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Chapter 1 Financial Statements of Not-for-Profit Organisations 1.17
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14. Following particulars relate to Madura Club for the year ended 31st December, 2018:
Dr. RECEIPTS AND PAYMENTS ACCOUNT Cr.
Receipts ` Payments `

To Balance b/d 60,000 By Salaries 1,24,500
To Subscriptions: By Stationery 24,000
Arrear 2,400 By Rates and Taxes 36,000
Current 1,26,600 By Telephone 6,000
Advance 4,800 1,33,800 By Investments 75,000
To Profit from Canteen 90,000 By Advertisements 10,500
To Miscellaneous Receipts 4,500 By Postage 8,800
To Interest on Investments 10,800 By Newspapers 1,200
To Sale of Old Newspapers 400 By Sundries 35,000
To Dividends 48,500 By Balance c/d 27,000
3,48,000 3,48,000

You are required to prepare Income and Expenditure Account and Balance Sheet after making the following
adjustments:
(a) There are 450 members each paying an annual subscription of ` 300, ` 2,700 being in arrears for 2017
in the beginning of this year.
(b) Stock of Stationery on 31st December, 2017 was ` 3,000 and on 31st December, 2018 was ` 5,400.
(c) Cost of Building is ` 6,00,000. Depreciate it at 5%.
[Surplus—` 15,600; Capital Fund as at 1st January, 2018—` 6,65,700;
Balance Sheet Total—` 6,86,100.]
15. From the following Receipts and Payments Account and other information given, prepare Income and
Expenditure Account and Balance Sheet of the Sivaji Social Club:
Dr. RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 Cr.
Receipts ` Payments `

To Balance (1st April, 2018) 7,000 By Prizes 2,200
To Subscriptions 24,000 By Games Equipments 2,000
To Profit on Dance Show 14,800 By Rent 10,500
To Collections (Matches) 2,500 By Rates 3,000
To Competition Fees 1,800 By Printing 1,600
To Sales of Refreshments 8,200 By Stationery 2,200
By Postages 1,900
By Secretary’s Expenses 1,400
By Repairs (Equipment) 2,700
By Wages 12,000
By Refreshments 5,100
By Balance (31st March, 2019) 13,700
58,300 58,300
The following matters should be taken into account:
(a) Capital Fund as at 1st April, 2018 ` 42,000.
(b) Fixed Assets owned by the Club as at 1st April, 2018—Furniture and Fittings ` 15,000; Games Equipments
` 20,000. These are to be depreciated @ 10% on opening values.
(c) Amounts outstanding as at 31st March, 2019—Printing ` 400; Refreshments ` 700.
(d) On 31st March, 2019—Rent paid in advance ` 1,500; Subscriptions due ` 1,200; Subscriptions in advance
` 500.
[Excess of Income over Expenditure—` 6,300; Balance Sheet Total—` 49,900.]