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1.12 Double Entry Book Keeping—CBSE XII
Illustration 14.
The Balance Sheet of Excellent Recreation Club as at 1st April, 2017 and the Receipts and
Payments Account for the year ended 31st March, 2018 are:

BALANCE SHEET as at 1st April, 2017
Liabilities ` Assets `
Capital Fund 4,20,000 Premises 4,00,000
Creditors for Stationery 10,000 Furniture 20,000
Bank Balance 10,000
4,30,000 4,30,000

RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Receipts ` Payments `
To Balance b/d 10,000 By Electricity Charges 12,000
To Subscriptions 86,000 By Furniture 30,000
To Donations 33,000 By Salaries 60,000
To Sundry Receipts 27,500 By Creditors for Stationery 25,000
By General Expenses 21,000
By Balance c/d 8,500
1,56,500 1,56,500
Additional Information:
(i) On 30th September, 2017, old furniture was donated to the Red Cross and new furniture
was purchased on 1st October, 2017. Depreciation @ 10% p.a. is to be provided on
the furniture.
(ii) On 31st March, 2018, creditors for stationery were ` 4,800 and the value of the unused
stationery was ` 5,400.
(iii) A payment of ` 5,000 for stationery by the Club was to be debited to the General Expenses.
You are required to prepare Income and Expenditure Account for the year ended
31st March, 2018 and Balance Sheet as at that date.
Solution:
Excellent Recreation Club
INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Electricity Charges 12,000 By Subscriptions 86,000
To Salaries 60,000 By Donations 33,000
To General Expenses 21,000 By Sundry Receipts 27,500
Add: Stationery Consumed 5,000 26,000
To Stationery Consumed (WN 2) 9,400
To Furniture (Donated to Red Cross) 20,000
To Depreciation on Furniture 1,500
(@ 10% p.a. on ` 30,000 for 6 months)
To Surplus—Excess of Income over Expenditure 17,600
1,46,500 1,46,500