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Following is the Receipts and Payments Account of Bharti Club for the year ended 31st March 2019?

RECEIPTS AND PAYMENTS ACCOUNT OF BHARTI CLUB

for the year ended 31st March, 2019

Receipts Amount Payments Amount
To Balance b/d           10,500 By Salary           25,000
To Subscriptions           70,500 By Travelling Expenses             4,000
To Donations             5,000 By Stationery           13,000
To Life Membership Fees           10,000 By Rent           32,000
To Income from Investments             2,000 By Books             4,000
By Balance c/d           30,000
          98,000           98,000

 

Additional Information:

Particulars 31st March 2018 31st March 2019
Advance Subscription                      2,000                      3,500
Outstanding Subscription                      3,400                      4,300
Books                      8,000                    12,000
9% Investments                    25,000                    25,000

Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019 and its Balance Sheet as at 31st March, 2019.

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    1. Curious M.Com
      This answer was edited.

      Here I have prepared the Income & Expenditure A/c and Balance Sheet of Bharti Club:

      Income & Expenditure A/c for the year ended 31st March 2019

      Expenditure Amt Income Amt
      To Salary          25,000 By Subscriptions (WN 1)          69,900
      To Travelling Expenses            4,000 By Donations            5,000
      To Stationery          13,000 By Life Membership Fees          10,000
      To Rent          32,000 By Income from Investments            2,000
      To Surplus (Balancing figure)          12,900
               86,900          86,900

       

      Balance Sheet as on 31st March 2019

      Liabilities  Amt Assets  Amt
      Capital Fund (WN 2)     44,900 Cash         30,000
      Add: Surplus     12,900         57,800 9% Investments         25,000
      Advance Subscription           3,500 Books         12,000
      Life Membership Fees         10,000 Outstanding Subscription           4,300
              71,300         71,300

       

      Working Note 1: Calculation of Subscriptions

      Particulars Amt
      Total subscriptions received in 2018-19        70,500
      Add: Advance subscription for 2018-19          2,000
                Subscription outstanding for 2018-19          4,300          6,300
             76,800
      Less: Advance subscription for 2019-20          (3,500)
                Subscription outstanding for 2017-18          (3,400)          (6,900)
             69,900

      Working Note 2: Calculation of Capital Fund

      We prepare the previous year’s balance sheet of Bharti Club to identify the capital.

      Balance Sheet as on 31st March 2018

      Liabilities  Amount Assets  Amount
      Capital Fund (Balancing figure)    44,900 Cash    10,500
      Advance Subscription      2,000 9% Investments    25,000
      Books      8,000
      Outstanding Subscription      3,400
         46,900    46,900
      • 0

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