Page 266 - ISCDEBK-XI

23.14 Double Entry Book Keeping—ISC XI

Illustration 9.

Following is the Receipts & Payments Account of a Sports Club for the year ended
31st December, 2020:
RECEIPTS & PAYMENTS ACCOUNT
Dr. for the year ended 31st December, 2020 Cr.
Receipts ` Payments `
To Balance b/d 7,500 By Salaries 14,000
To Subscriptions (Including ` 2,000 By Match Expenses 28,000
for the year 2019) 40,000 By 12% Investment 40,000
To Donations 15,000 (Purchased on 1st January, 2020)
To Life Membership Fees 35,000 By Sports Materials 15,000
To Sale of Furniture at Book Value 5,000 By Printing and Stationery 12,000
To Entrance Fees 10,000 By Honorarium 5,000
To Interest on 10% Investment for full year 20,000 By Furniture 15,000
To Match Fund 40,000 By Newspapers, Magazines and Journals 10,000
To Donation for Building Fund 45,000 By Books 35,000
To Sale of Newspapers (Old) 2,500 By Municipal Taxes 6,000
By Balance c/d 40,000
2,20,000 2,20,000

Additional Information:

(i) The position of the Club on 1st January, 2020 was as follows:
`

Subscriptions due 3,000
Furniture 10,000
Books 20,000
Building 1,25,000
Stock of Sports Materials 4,500
Creditors for Printing 2,500
(ii) The Club has 1,000 members each paying an annual subscription of ` 50. 20 members
paid their subscription in advance in 2019. In the year 2020, subscription was received
in advance from 15 members.
(iii) Municipal Taxes are paid every year on 1st April.
(iv) One member donated a Billiards Table worth ` 50,000.

(v) Books were worth ` 46,000 on 31st December, 2020 and stock of sports materials on that
date amounted to ` 4,000.

(vi) 12% investments include ` 30,000 invested from donations received for building fund.
Prepare Income & Expenditure Account for the year ended 31st December, 2020 and a Balance
Sheet as on that date.