The following is the
Receipts and Payments Account of Lion Club for the year ended 31st March, 2016.
Receipts
|
Rs.
|
Payments
|
Rs.
|
Opening balance:
|
|
Salaries
|
1,20,000
|
Cash
|
10,000
|
Creditors
|
15,20,000
|
Bank
|
3,850
|
Printing and stationary
|
70,000
|
Subscription received
|
2,02,750
|
Postage
|
40,000
|
Entrance donation
|
1,00,000
|
Telephones and telex
|
52,000
|
Interest received
|
58,000
|
Repairs and maintenance
|
48,000
|
Sale of assets
|
8,000
|
Glass and table linen
|
12,000
|
Miscellaneous income
|
9,000
|
Crockery and cutlery
|
14,000
|
Receipts at Coffee room
|
10,70,000
|
Garden upkeep
|
8,000
|
Soft drinks
|
5,10,000
|
Membership fees
|
4,000
|
Swimming pool
|
80,000
|
Insurance
|
5,000
|
Tennis court
|
1,02,000
|
Electricity
|
28,000
|
|
|
Closing balance:
|
|
|
|
Cash
|
8,000
|
|
|
Bank
|
2,24,000
|
|
21,53,600
|
|
21,53,600
|
The assets and
liabilities as on 1.4.2015 were as follows:
|
Rs.
|
Fixed assets (net)
|
5,00,000
|
Stock
|
3,80,000
|
Investment in 12% Government securities
|
5,00,000
|
Outstanding subscription
|
12,000
|
Prepaid insurance
|
1,000
|
Sundry creditors
|
1,12,000
|
Subscription received in advance
|
15,000
|
Entrance donation received pending membership
|
1,00,000
|
Gratuity fund
|
1,50,000
|
The following adjustments
are to be made while drawing up the accounts:
(i) Subscription
received in advance as on 31st March, 2016 was Rs.18,000.
(ii) Outstanding
subscription as on 31st March, 2016 was Rs.7,000.
(iii) Outstanding
expenses are salaries Rs.8,000 and electricity Rs.15,000.
(iv) 50% of the
entrance donation was to be capitalized. There was no pending membership as on
31st March, 2016.
(v) The cost of assets
sold net as on 1.4.2015 was Rs.10,000.
(vi) Depreciation is
to be provided at the rate of 10% on assets.
(vii) A sum of Rs.20,000
received in October 2015 as entrance donation from an applicant was to be refunded
as he has not fulfilled the requisite membership qualifications. The refund was
made on 3.6.2016.
(viii) Purchases made
during the year amounted Rs.15,00,000.
(ix) The value of
closing stock was Rs.2,10,000.
(x) The club as a
matter of policy, charges off to income and expenditure account all purchases
made on account of crockery, cutlery, glass and linen in the year of purchase.
You are required to
prepare an Income and Expenditure Account for the year ended 31st March, 2016
and the Balance Sheet as on 31st March, 2016 along with necessary workings.