Page 277 - ISCDEBK-XI

Non-Trading Organisation 23.25

2. Calculation of Subscriptions in Arrears for the year ended 31st March, 2020: `
Subscriptions for the year (720 × ` 100) 72,000
Less: Subscriptions received for the year 64,800
Subscriptions in Arrear for the year ended 31st March, 2020 7,200

Illustration 15.
Prepare Income & Expenditure Account from the following details of a tennis club for the year
ended 31st March, 2020 and the Balance Sheet as at that date:

RECEIPTS & PAYMENTS ACCOUNT (AN EXTRACT)
Dr. for the year ended 31st March, 2020 Cr.
Receipts ` Payments `

Subscriptions—Arrears 700 Caterers—Old Dues 3,500
Subscriptions—Current 11,000 Caterers—Current 9,200
Locker Rent 2,500 Band Fees 1,600
Dance Receipts 14,500 New Equipment 900
Sale of Old Balls 1,200 Repairs to Nets 600
Donations 1,000 New Balls 5,000
Match Expenses 800
Rates on Club House 2,400
Notes:
1. The club has 60 members and the subscription rate is ` 200 per year.
2. On 31st March, 2020, ` 500 was owing for tennis balls and the rate paid includes ` 600 relating to the following year.
3. Equipment is depreciated at 10% p.a. on cost including new equipment purchased.
4. On 1st April, 2019, the club had the following assets: `
Freehold Club House 25,000
Cash at Bank 9,000
Equipment 13,500
Cash in Hand 260
(ISC 1992, Modified)
Solution: INCOME & EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2020 Cr.
Expenditure ` Income `
To Catering Charges 9,200 By Subscriptions 12,000
To Band Fees 1,600 By Locker Rent 2,500
To Repairs to Nets 600 By Dance Receipts 14,500
To Purchase of New Balls: By Sale of Old Balls 1,200
Payment 5,000 By Donations* 1,000
Add: Owing 500 5,500
To Match Expenses 800
To Rates 2,400
Less: Prepaid 600 1,800
To Depreciation on Equipment 1,440
To Surplus—Excess of Income over Expenditure 10,260
(Transferred to Capital Fund)
31,200 31,200
*Donations have been treated as General Donations.