The following is the Receipts and Payments Account of a Sports Club for the year ended 31st December, 2025. Receipts ₹ Payments ₹ To Balance b/d…
CA Foundation · Accounting · RTP · January 2026
The following is the Receipts and Payments Account of a Sports Club for the year ended 31st December, 2025. Receipts ₹ Payments ₹ To Balance b/d 7,500 By Salaries 14,000 To Subscriptions (including - 2,000 for the year 2024) 40,000 By Match Expenses 28,000 By Sports Materials 15,000 To Donations 15,000 By Printing & Stationery 12,000 To Life Membership Fees 35,000 By Honorarium 5,000 By Furniture 15,000 To Sale of Furniture at book value 5,000 By Magazines & Journals 10,000 To Entrance Fees 10,000 By Books 35,000 To Interest on 10% Investments for the full year 20,000 By Municipal Taxes 6,000 By Balance c/d 80,000 To Match Fund 40,000 To Donation for Building Fund 45,000 To Sale of Newspapers 2,500 2,20,000 2,20,000 Additional Information: (i) The position of the Club on January, 1,2025 was as follows: Subscriptions due - 3,000Furniture - 10,000Books - 20,000Building - 1,25,000Stock of Sports Materials - 4,500Creditors 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 2024. In the year 2025, subscription was received in advance from 15 members. (iii) Municipal Taxes paid on 1st April every year. (iv) One member donated a Billiard Table worth - 50,000. (v) Books were worth - 46,000 on 31st December, 2025 and stock of sports materials on that date amounted to 4,000. Prepare Income and Expenditure Account for the year ended 31st December, 2025 and Balance Sheet as on that date.
Suggested Answer and Working Notes:
Income and Expenditure Account for the year ended 31st December, 2025 Expenditure ₹ Income ₹ To Salaries 14,000 By Subscriptions (₹ 1,000 ×₹ 50) 50,000 To Sports Materials 15,000 Add: Opening Stock 4,500 19,500 By Interest on 10% Investments 20,000 Less: Closing stock 4,000 15,500 By Sale of old newspapers 2,500 To Printing and Stationery 12,000 Less: Creditors in the beginning (2, 500) 9,500 To Honorarium 5,000 To Magazines and Journals 10,000 To Depreciation on Books (₹ 20,000 +35,000 -46,000) 9,000 To Municipal Taxes 6,000 Add: Prepaid in previous year (₹ 6,000×₹ 3/12) 1,500 7,500 Less: Prepaid for next year 1,500 6,000 To Excess of Income over Expenditure (Surplus) 3,500 72,500 72,500 Balance Sheet as at 31st December, 2025 Liabilities ₹ Assets ₹ Capital Fund (W.N.1) 3,68,000 Building 1,25,000 Add: Surplus 3,500 Furniture 10,000 3,71,500 Additions during the year 15,000 Add: Life Membership Fees 35,000 25,000 Add: Entrance Fees 10,000 Less: Sold (5, 000) 20,000 Donation for Building Fund 45,000 Books 46,000 Donation for Billiards Table 50,000 Stock of Sports Materials 4,000 Donations 15,000 Billiards Table 50,000 Match Fund 40,000 10% Investment 2,00,000 Less: Match Expenses (28, 000) 12,000 Prepaid Municipal Taxes (₹ 6,000 x 3/12) 1,500 Subscription in Advance (15x 50) 750 Subscriptions Outstanding (WN - 2) 12,750 Cash in Hand 80,000 5,39,250 5,39,250 Working Notes: 1. Calculation of Capital Fund as on 1st January, 2025 Balance Sheet as at January, 1,2025 Liabilities ₹ Assets ₹ Capital Fund (balancing figure) 3,68,000 Building 1,25,000 Creditors for Printing and Stationery 2,500 Furniture 10,000 Subscriptions in Advance (20x 50) 1,000 Books 20,000 10% Investments 2,00,000 Stock of Sports Materials 4,500 Subscriptions Due 3,000 Prepaid Municipal Taxes 1,500 Cash in Hand 7,500 3,71,500 3,71,500 2. Calculation of Subscriptions Outstanding Subscription Account Particulars ₹ Particulars ₹ To Subscriptions Due A/c (in the beginning) 3,000 By Subscriptions received in Advance A/c (₹ 20×₹ 50) (2024) 1,000 To Income and Expenditure A/c (₹ 1,000× ₹ 50) 50,000 By Cash A/c 40,000 To Subscriptions in Advance (₹ 15× ₹ 50) (2025) 750 By Subscriptions Outstanding (2025) 12,750 53,750 53,750
Topics: Financial Statements of Not-for-Profit Organisations
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