Page 274 - ISCDEBK-XI

23.22 Double Entry Book Keeping—ISC XI

On 1st April, 2019, the Club owned a Club House costing ` 90,000; equipment valued at
` 7,500; a Lawn mower valued at ` 900. The Club owed dance expenses ` 1,170 and secretarial
expenses ` 750. Subscriptions in arrear were ` 1,050 and received in advance ` 600.
At 31st March, 2020, in addition to the Club House, equipment was valued at ` 10,500. The
Club owed dance expenses ` 660 and secretarial expenses ` 1,350. Subscriptions outstanding
were ` 750 and received in advance were ` 1,500. (ISC 1999, Adapted)
Solution: Country Club
INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To General Expenses 3,600 By Subscriptions 23,550
To Repairs and Decoration of Club House 4,500 Add: Subscriptions Received
To Rent of Ground 12,000 in Advance (1.4.19) 600
To Secretarial Expenses 3,000 Subscriptions in
[` 2,400 + ` 1,350 (Outstanding on 31.3.20) Arrear (31.3.20) 750 1,350
– ` 750 (Outstanding on 1.4.19)] 24,900
To Loss on Sale of Old Lawn mower Less: Subscriptions Received
(` 900 – ` 600) 300 in Advance (31.3.20) 1,500
To Depreciation on Equipment (WN 1) 1,500 Subscriptions in
To Surplus, i.e., Excess of Income over Arrear (1.4.19) 1,050 2,550 22,350
Expenditure, transferred to Capital Fund 2,760 By Locker Rent 1,260
By Surplus from Dances and Socials:
Receipts 13,140
Less: Expenses 9,090* 4,050
27,660 27,660
*Expenses (2019–20) = ` 9,600 (paid) + ` 660 (outstanding 2019–20) – ` 1,170 (outstanding 2018–19) = ` 9,090.

BALANCE SHEET as at 31st March, 2020
Liabilities ` Assets `
Capital Fund: Club House 90,000
As on 1.4.2019 (WN 2) 1,04,430 Equipment 10,500
Add: Surplus for the year 2,760 1,07,190 Cash 9,450
Creditors for: Subscriptions in Arrears 750
Dance Expenses 660
Secretarial Expenses 1,350 2,010
Subscriptions Received in Advance 1,500
1,10,700 1,10,700

Working Notes:
1. Dr. EQUIPMENT ACCOUNT Cr.
Particulars ` Particulars `

To Balance b/d 7,500 By Cash A/c (Sales) 1,500
To Cash A/c (Purchases) 6,000 By Depreciation A/c (Balancing Figure) 1,500
By Balance c/d 10,500
13,500 13,500