From the following trial balance and accompanying notes for adjustments, prepare Income and Expenditure Account for the year ended Dec 31, 2008 and a Balance Sheet as on that date of a club:
|
Debit Balance |
Credit Balance |
||
|
Building |
86,400 |
Pent |
7,340 |
|
Crockery Jan 1 2008 |
4,000 |
Sale of Tickets |
13,400 |
|
Crockery purchased |
2,000 |
Subscriptions |
24,300 |
|
Printing and Stationery |
1,140 |
Billiard Room Receipts |
7,690 |
|
Billiard Board |
20,800 |
Profit on Sale of Wire |
2,400 |
|
Billiard Expenses |
4,270 |
Entertainment Receipts |
3,200 |
|
Arrear — subscriptions Jan 112008 |
2,250 |
Donations |
17,000 |
|
Honorarium |
6,750 |
Entrance Fees |
450 |
|
Administration Expenses |
13490 |
Newspapers |
240 |
|
Stock of Wire (Dec 31, 2003) |
600 |
Creditors |
6,270 |
|
Cash in Hand and at Bank |
6,270 |
Capital Fund |
65,820 |
Note for adjustments
- Stock of Stationery and Printing on Dec 31, 2008 Rs 70.
- Out of the total subscription Rs 2,250 represented arrears collected and Rs 1,520 paid in advance.
- Entrance fees to be capitalised.
- Out of the donations, Rs 7,200 represented donation to election fund and of the balance 50% shall be capitalised.
- Depreciate crockery on the following basis: 1/5 15 of their value is to be written off in the year of purchase 2/5 the in each of the next two yeaRs Of the stock of crockery as on Jan 1, 2008 (Rs 4,000) one half was one-year old and the other half, two-year old.