Question

Receipt and Payment Account of Shankar Sports club is given below, for the year ended March 31, 2017

Receipt and Payment Account  
for the year ending March 31, 2017 

Receipts	Amount (Rs)	Payments	Amount (Rs)
Opening Cash in hand	2,600	Rent	18,000
Entrance fees	3,200	Wages	7,000
Donation for building	23,000	Billiard table	14,000
Locker rent	1,200	Furniture	10,000
Life membership fee	7,000	Interest	2,000
Profit from entertainment	3,000	Postage	1,000
Subscription	40,000	Salary	24,000
		Cash in hand	4,000
	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with help of following Information:

Subscription outstanding on March 31, 2016 is Rs 1,200 and Rs 2,300 on March 31, 2017, opening stock of postage stamps is Rs 300 and closing stock is Rs 200, Rent Rs 1,500 related to 2015 and Rs 1,500 is still unpaid.

On April 01, 2016 the club owned furniture Rs 15,000, Furniture valued at Rs 22,500

On March, 31, 2017, The club took a loan of Rs 20,000 (@ 10% p.a.) in 2017.

Answer 1

Books of Shankar Sports Club 
Income and Expenditure Account 
as on 31 Dec. 2017

Expenditure		Amount (Rs)	Income		Amount (Rs)
Rent	18,000	18,000	Entrance Fees		3,200
Add: Outstanding for 2017	1,500		Locker Rent		1,200
	19,500		Profit from Entertainment		3,000
Less: Outstanding for 2016	(1,500)		Subscription	40,000	41,100
Wages		7,000	Less: Outstanding for 2016	(1,200)
Depreciation on Furniture		2,500		38,800
Interest		2,000	Add: Outstanding for 2017	2,300
Postage	1000	1,100	Deficit (Balancing Figure)		6,100
Add: Opening Stock	300
	1,300
Less: Closing Stock	(200)
Salaries		24000
		54600			54600

Balance Sheet  
as on  December 31, 2016 

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Rent Outstanding	1,500	Cash in Hand	2,600
10%  Loan	20,000	Subscription Outstanding	1,200
		Furniture	15,000
		Stock of Postage Stamps	300
		Capital fund Deficit (Balancing figure)	2,400
	21,500		21,500

Balance Sheet  
as on December 31, 2017 

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Rent Outstanding		1,500	Subscription Outstanding		2,300
10%  Loan		20,000	Stock of Postage Stamps		200
Donation for Building		23,000	Billiard Table		14,000
Capital Fund	(2,400)		Furniture	15,000	22,500
Add: Life Membership Fee	7,000		Add: Purchases	10,000
Less: Deficit	(6,100)	(-1500)		25,000
			Less : Depreciation	(2500)
			Cash in Hand		4,000
			* Capital Fund (Deficit)		1500
		43,000			43,000

*Working Note:

Capital Fund		(-2,400)
Add:	Life Membership Fees	7,000
Less:	Deficit	(6,100)
	Net Deficit	(-1,500)