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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 salary5,000Cash at Bank12,000
Capital fund60,000Outstanding subscription3,000
Sports material30,000
Furniture20,000
65,00065,000

Receipts and Payments Account for the year ended 31.03.2022

Dr. Receipts₹Cr. Payments₹
To Balance b/d12,000By Salary20,000
To Subscriptions65,000By Purchase of Sports material15,000
To Entrance fee10,000By Investment25,000
To Sale of old sports material3,000By Fixed deposit20,000
To Rent12,500By Postage1,000
By Electricity charges2,500
By Balance c/d19,000
1,02,5001,02,500

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.

Karnataka PUCKarnataka 2nd PUC Commerce Board 2023Subjective· 12mImportance★★★★★est
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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)17,000By Subscriptions67,000
To Depreciation on Sports material5,000By Entrance fee (½)5,000
To Postage1,000By Sale of old sports material3,000
To Electricity charges2,500By Rent12,500
To Surplus (excess of income over expenditure)62,000
Total87,500Total87,500

ii) Balance Sheet as on 31.03.2022

| Liabilities | ₹ | Assets | ₹ |

|---|---|---|---| …

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