From the following information and Receipts and Payments Account of a club, prepare Income and Expenditure Account for the year ending Dec 31, 2008 and a Balance Sheet on that date.
Receipts and Payments Account for the year ending Dec 31, 2008
|
Dr. |
Cr. |
||
|
Receipts |
Rs |
Payments |
Rs |
|
Balance b/d |
4,000 |
Rent |
2,400 |
|
Entrance Fees |
600 |
Wages |
2,600 |
|
Subscriptions |
21,400 |
Lighting Charges |
1,000 |
|
Donations |
4,000 |
Books Purchases |
3,000 |
|
Life Membership Fees |
3,000 |
Office Expenses |
4,000 |
|
Interest on Deposits |
500 |
10% Fixed Deposits |
2,000 |
|
Proceeds of Tournaments |
4,500 |
(on July 1, 2008) |
3,600 |
|
Tournament Expenses |
1,400 |
||
|
Cash in Hand |
|||
|
38,000 |
38,000 |
Additional Information
- On Dec 31, 2007, the club possessed books worth Rs 25,000 and furniture worth Rs 10,000. Provide depreciation on these assets @ 10% including the purchases during the year.
- Subscription in arrears at the beginning of the year amounted to Rs 500 and at the end of end of the year Rs 800 was outstanding.
- The club paid three months rents in advance both in the beginning and at the end of the year.