Following is the Receipts and Payments Account of Sunrise Sports Club for the year ended 31st March, 2024:
| Receipts | Rs | Payments | Rs |
|---|---|---|---|
| To Balance b/d (Cash and Bank) | 15,000 | By Salaries | 24,000 |
| To Subscriptions | 85,000 | By Rent and Taxes | 12,000 |
| To Donations (General) | 10,000 | By Printing and Stationery | 3,000 |
| To Entrance Fees | 6,000 | By Sports Material purchased | 20,000 |
| To Interest on Investments | 2,000 | By Furniture purchased (1st October, 2023) | 15,000 |
| To Sale of Old Newspapers | 500 | By Investments purchased | 20,000 |
| To Locker Rent | 1,500 | By General Expenses | 4,000 |
| By Balance c/d (Cash and Bank) | 22,000 | ||
| Total | 1,20,000 | Total | 1,20,000 |
Additional Information:
- Subscriptions received during the year include Rs 3,000 for the year 2022-23 and Rs 2,000 for the year 2024-25. Subscriptions outstanding for the current year 2023-24 amount to Rs 6,000, and Rs 1,000 had been received in advance last year for the current year.
- Outstanding Salaries for the current year amount to Rs 2,000.
- Depreciate Furniture (including the furniture purchased during the year) at 10% per annum, and Sports Material at 20% per annum.
- The club's Balance Sheet as on 1st April, 2023 showed the following balances: Building Rs 1,00,000; Investments Rs 30,000; Furniture Rs 10,000; Sports Material Rs 5,000; Subscription Outstanding Rs 3,000; Cash and Bank Balance Rs 15,000; Subscription received in advance Rs 1,000.
Prepare the Income and Expenditure Account of Sunrise Sports Club for the year ended 31st March, 2024, and its Balance Sheet as on that date.
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Start your 14-day free trial to unlock the full solution →Working Note 1 — Subscription for the year
Received during the year: Rs 85,000
Less: relating to 2022-23: Rs 3,000 → Rs 82,000
Less: relating to 2024-25 (advance): Rs 2,000 → Rs 80,000
Add: Outstanding for 2023-24: Rs 6,000 → Rs 86,000
Add: Received in advance last year for 2023-24: Rs 1,000 → Rs 87,000
Subscription to be credited to the Income and Expenditure Account = Rs 87,000
Working Note 2 — Salaries
Paid during the year Rs 24,000 + Outstanding for the current year Rs 2,000 = Rs 26,000
Working Note 3 — Depreciation
Furniture: Old furniture Rs 10,000 × 10% (full year) = Rs 1,000; New furniture Rs 15,000 × 10% × 6/12 (used from 1st October, 2023 to 31st March, 2024) = Rs 750. Total depreciation on Furniture = Rs 1,750. Closing Furniture = (Rs 10,000 + Rs 15,000) − Rs 1,750 = Rs 23,250.
Sports Material: Opening Rs 5,000 + Purchased during the year Rs 20,000 = Rs 25,000; Depreciation @ 20% = Rs 5,000. Closing Sports Material = Rs 25,000 − Rs 5,000 = Rs 20,000.
Working Note 4 — Opening Capital Fund (as on 1st April, 2023)
Total Assets: Building Rs 1,00,000 + Investments Rs 30,000 + Furniture Rs 10,000 + Sports Material Rs 5,000 + Subscription Outstanding Rs 3,000 + Cash and Bank Rs 15,000 = Rs 1,63,000
Less: Subscription received in advance (liability) Rs 1,000
Opening Capital Fund = Rs 1,62,000
Income and Expenditure Account of Sunrise Sports Club for the year ended 31st March, 2024
| Dr. Expenditure | Rs | Cr. Income | Rs |
|---|---|---|---|
| To Salaries (W.N.2) | 26,000 | By Subscriptions (W.N.1) | 87,000 |
| To Rent and Taxes | 12,000 | By Donations (General) | 10,000 |
| To Printing and Stationery | 3,000 | By Entrance Fees | 6,000 |
| To General Expenses | 4,000 | By Interest on Investments | 2,000 |
| To Depreciation on Furniture (W.N.3) | 1,750 | By Sale of Old Newspapers | 500 |
| To Depreciation on Sports Material (W.N.3) | 5,000 | By Locker Rent | 1,500 |
| To Surplus (transferred to Capital Fund) | 55,250 | ||
| Total | 1,07,000 | Total | 1,07,000 |
Balance Sheet of Sunrise Sports Club as on 31st March, 2024 …
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