Question

From the following Receipts and Payments Account of Defence Club and from the information supplied, prepare Income and Expenditure Account for the year ended 31^st March 2016 and Balance Sheet as on that date.

Receipts and Payments Account for the year ended 31.3.2016

1. The Club has 50 members each paying an annual subscription of Rs. 2,500. Subscription outstanding in 31.03.2015 was to the extent of Rs. 3,000

2. On 31 March 2016, Salaries Outstanding amounted to Rs. 10,000. Salaries Paid in 2015 – 16 included Rs. 30,000 for the year 14 – 15

3. On 1 April 2015, the Club owned Building valued @ Rs. 10,00,000; Furniture Worth of Rs. 1,00,000 and Books Rs. 1,00,000

Balance Sheet as on 1.4.2015

Answer 1

Income and Expenditure Account for the year ended 31.3.16

Balance Sheet as on 31.03.2016