The following is the Balance Sheet and Receipts and Payments account of Unity Sports Club, Bengaluru.
Balance Sheet as on 01.04.2021
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Outstanding salary | 5,000 | Cash at Bank | 12,000 |
| Capital fund | 60,000 | Outstanding subscription | 3,000 |
| Sports material | 30,000 | ||
| Furniture | 20,000 | ||
| 65,000 | 65,000 |
Receipts and Payments Account for the year ended 31.03.2022
| Dr. Receipts | ₹ | Cr. Payments | ₹ |
|---|---|---|---|
| To Balance b/d | 12,000 | By Salary | 20,000 |
| To Subscriptions | 65,000 | By Purchase of Sports material | 15,000 |
| To Entrance fee | 10,000 | By Investment | 25,000 |
| To Sale of old sports material | 3,000 | By Fixed deposit | 20,000 |
| To Rent | 12,500 | By Postage | 1,000 |
| By Electricity charges | 2,500 | ||
| By Balance c/d | 19,000 | ||
| 1,02,500 | 1,02,500 |
Adjustments:
a) Subscriptions outstanding for the year 2021-22 is 5,000
b) Depreciate sports materials by 5,000
c) Outstanding salary for 2021-22 2,000
d) Capitalise ½ of the entrance fees
Prepare ;
i) Income and Expenditure Account for the year ended 31.03.2022.
ii) Balance Sheet as on 31.03.2022.
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Start your 14-day free trial to unlock the full solution →Income 87,500 − Expenditure 25,500 = Surplus ₹62,000. Capital fund = 60,000 + 62,000 + 5,000 (½ entrance fee) = ₹1,27,000. Balance Sheet ties at ₹1,29,000.
Workings
- Subscriptions income = Received 65,000 − opening outstanding 3,000 (of 2020-21) + closing outstanding 5,000 (of 2021-22) = ₹67,000.
- Salary expense = Paid 20,000 − opening outstanding 5,000 + closing outstanding 2,000 = ₹17,000.
- Entrance fee ₹10,000: ½ capitalised (₹5,000 to Capital Fund), ½ treated as income (₹5,000).
- Sports material (asset) = Opening 30,000 + Purchases 15,000 − Depreciation 5,000 = ₹40,000. (Sale of old sports material ₹3,000 taken as revenue income.)
i) Income and Expenditure Account for the year ended 31.03.2022
| Dr. Expenditure | ₹ | Cr. Income | ₹ |
|---|---|---|---|
| To Salary (17,000) | 17,000 | By Subscriptions | 67,000 |
| To Depreciation on Sports material | 5,000 | By Entrance fee (½) | 5,000 |
| To Postage | 1,000 | By Sale of old sports material | 3,000 |
| To Electricity charges | 2,500 | By Rent | 12,500 |
| To Surplus (excess of income over expenditure) | 62,000 | ||
| Total | 87,500 | Total | 87,500 |
ii) Balance Sheet as on 31.03.2022
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---| …
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