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23.28 Double Entry Book Keeping—ISC XI

Illustration 17.
Following is the Receipts & Payments Account of Sydney Club for the year ended
31st March, 2020:
Dr. Cr.
Receipts ` Payments `
To Balance b/d: By Salaries 1,20,000
Cash 3,850 By Creditors 15,20,000
Bank 10,000 By Printing and Stationery 70,000
To Subscriptions 2,02,750 By Postage 40,000
To Entrance Fee 1,00,000 By Telephone and Internet Charges 52,000
To Interest Received 58,000 By Repairs and Maintenance 48,000
To Sale of Assets 8,000 By Glass and Table Linen 12,000
To Miscellaneous Income 9,000 By Crockery and Cutlery 14,000
To Receipts from: By Garden Upkeep 8,000
Coffee Room 10,70,000 By Membership Fees 4,000
Wines and Soda 5,10,000 By Insurance 5,000
Swimming Pool 80,000 By Electricity 28,000
Tennis Court 1,02,000 By Balance c/d:
Cash 8 ,000
Bank 2,24,600
21,53,600 21,53,600
The Assets and Liabilities as on 1st April, 2019 were as follows: `
Fixed Assets (Net) 5,00,000
Stock 3,80,000
Investments in 12% Government Securities 5,00,000
Outstanding Subscriptions 12,000
Prepaid Insurance 1,000
Sundry Creditors 1,12,000
Subscription Received in Advance 15,000
Entrance Fee Received Pending Membership 1,00,000
Gratuity Fund 1,50,000
Following adjustments are to be made while drawing up accounts:
(i) Subscription received-in-advance as on 31st March, 2020 was ` 18,000.
(ii) Outstanding subscriptions as on 31st March, 2020 was ` 7,000.
(iii) Outstanding expenses are: `
Salaries 8,000
Electricity 15,000
(iv) There is no pending membership as on 31st March, 2020.
(v) The cost of asset sold net as on 1st April, 2019 was ` 10,000.
(vi) Depreciation is to be provided at the rate of 10% on assets.
(vii) A sum of ` 20,000 received in October, 2019 as Entrance Fee from an applicant was to
be refunded, as he had not fulfilled the requisite membership qualification. The refund
was made on 3rd June, 2020.
(viii) Purchase made during the year amounted to ` 15,00,000.
(ix) The value of closing stock was ` 2,10,000.
(x) The club as a matter of policy charges off to Income & Expenditure Account all purchases
made on account of crockery, cutlery, glass and linen in the year of purchase.
You are required to prepare an Income & Expenditure Account for the year ended
31st March, 2020 and the Balance Sheet as on that date.