From the following Income and Expenditure Account and additional information of Happy Club, prepare Receipts and Payments Accounts and Balance Sheet…

CA Foundation · Accounting · MTP · May 2026
From the following Income and Expenditure Account and additional information of Happy Club, prepare Receipts and Payments Accounts and Balance Sheet of the club as on 31st March, 2026. Income and Expenditure Account for the year ending 31st March, 2026 Expenditure ₹ Income ₹ To Salaries 4,80,000 By Subscription 6,80,000 To Printing and Stationery 24,000 By Entrance Fees 16,000 To Postage 2,000 By Misc. Income 1,44,000 To Telephone 6,000 To Office expenses 48,000 To Bank Interest 22,000 To Audit Fees 10,000 To Annual General Meeting Exp. 1,00,000 To Depreciation (Sports Equipment) 28,000 To Surplus 1,20,000 8,40,000 8,40,000 Additional Information: Particulars As on 31 st March, 2025 As on 31 st March, 2026 Subscription Outstanding 64,000 72,000 Subscription Received in advance 52,000 33,600 Salaries Outstanding 24,000 32,000 Audit Fees Payable 8,000 10,000 Bank Loan 1,20,000 1,20,000 Value of Sports Equipment 2,08,000 2,52,000 Value of Club Premises 7,60,000 7,60,000 Cash in Hand ? 1,14,000

Suggested Answer and Working Notes:

In the Books of Happy Club Receipts and Payments Account for the year ended 31st March, 2026 RECEIPTS Particulars ₹ PAYMENTS Particulars ₹ To Balance b/d (balancing figure) 54,400 By Salaries Paid (W.N.2) 4,72,000 To Subscriptions Received (W.N.1) 6,53,600 By Audit fee (W.N.3) 8,000 To Entrance Fees 16,000 By Telephone 6,000 To Misc. Income 1,44,000 By Stationery & Printing 24,000 By Postage 2,000 By Office expense 48,000 By Bank Interest 22,000 By Annual general meeting expenses 1,00,000 By Sports Equipment’s (W.N.4) 72,000 By Balance c/d 1,14,000 8,68,000 8,68,000 Balance Sheet of Happy Club as at March, 31,2026 Liabilities Particulars ₹ Assets ₹ Capital Fund : Club Premises 7,60,000 Balance as per previous Balance Sheet 8,82,400 Sport Equipment 2,52,000 Add: Surplus for2025-26 1,20,000 Subscription Outstanding 72,000 10,02,400 Cash in hand 1,14,000 Bank Loan 1,20,000 Subscription received in advance 33,600 Audit Fee Outstanding 10,000 Salaries Outstanding 32,000 11,98,000 11,98,000 Balance Sheet of Happy Club as at 31 st March, 2025 Liabilities ₹ Assets ₹ Subscriptions received in advance 52,000 Club Premises 7,60,000 Salaries Outstanding 24,000 Sports Equipment 2,08,000 Audit fees payable 8,000 Subscriptions Outstanding 64,000 Bank Loan 1,20,000 Cash in hand 54,400 Capital Fund (balancing figure) 8,82,400 10,86,400 10,86,400 Working Notes: 1. Subscription received in2025-26 Particulars ₹ Subscription for2025-26 on accrual basis 6,80,000 Add: Amount received in advance on 31.03.2026 33,600 Outstanding as on 01.04.2025 received in2025-26 64,000 7,77,600 Less: Outstanding to be received on 31.03.2026 (72, 000) Amount of2025-26 received in2024-25 (52, 000) 6,53,600 2. Salary paid in2025-26 Particulars ₹ Salary for2025-26 on accrual basis 4,80,000 Add: Outstanding as on 01.04.2025 paid in2025-26 24,000 Less: Outstanding to be paid on 31.03.2026 (32, 000) 4,72,000 3. Audit Fees paid in2025-26 Particulars ₹ Audit Fees for2025-26 on accrual basis 10,000 Add: Outstanding as on 01.04.2025 paid in2025-26 8,000 Less: Outstanding to be paid on 31.03.2026 (10, 000) 8,000 4. Sports Equipment purchased during 2025-26 Particulars ₹ WDV as on 31.03.2026 2,52,000 Add: Depreciation 28,000 Less: WDV as on 31.03.2025 (₹ 2,08,000) 72,000

Topics: Financial Statements of Not-for-Profit Organisations

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