The Income and Expenditure Account of Global Sports Club for the year ended on 31 st March, 2025 is given as under: Expenditure ₹ Income ₹ To Upkeep…

CA Foundation · Accounting · PYQS · January 2026
The Income and Expenditure Account of Global Sports Club for the year ended on 31 st March, 2025 is given as under: Expenditure ₹ Income ₹ To Upkeep of grounds 24,000 By Subscription 1,80,000 To Salary 1,14,000 By Entrance Fees 6,000 To Books and Magazines 12,000 By Income from Annual Meet: To Annual Dinner Expenses: Receipts 35,450 Expenses 36,000 Less: Expenses 18,000 Less: Contribution 24,000 12,000 17,450 By Interest on investment @11%. (Cost of Investment - 2,05,000 Purchases on 31 st March, 2024) 22,550 To Audit Fees 6,000 To Electricity Expenses 10,800 To Interest & Bank Charges 3,600 To Depreciation on Sports Equipment 7,200 To Surplus 36,400 2,26,000 2,26,000 This account has been prepared after the following adjustments: 31 st March, 2024 31 st March, 2025 (1) Subscription Outstanding 14,400 18,000 (2) Subscription received in advance 10,800 6,480 (3) Outstanding Salary 9,600 10,800 (4) Prepaid Electricity Expenses Nil 1,440 The club owned a sports ground valued at 2,40,000. The club had sports equipment on 1 st April, 2024 valued at 62,400. At the end of the year, after depreciation, the value of this equipment amounted to 64,800. Audit fees of 4,800 for the year 2023-24 was paid during the current year. Audit fees for 2024-25 is as yet outstanding. During 2023-24, the club had raised a bank loan of 48,000. This loan was outstanding throughout the current year. On 1 st April, 2024 cash in hand amounted to 33,360. You are required to prepare: (i) Receipts and Payments Account for the year ended on 31 st March, 2025 (ii) Balance Sheet as at 31 st March, 2025.

Suggested Answer and Working Notes:

Global Sports Club Receipts and Payments Account for the year ended 31 st March, 2025 Receipts Amount ₹ Amount ₹ Payments Amount ₹ Amount ₹ To Balance b/d 33,360 By Upkeep of Ground 24,000 To Subscription (WN - 2) 1,72,080 By Salaries 1,14,000 Add: outstanding during 2023-24 9,600 Less: outstanding during 2024-25 (10, 800) 1,12,800 To Entrance Fees 6,000 By Books and Magazines 12,000 To Contribution for annual dinner 24,000 By Audit fee (2023-24) 4,800 To Annual meet receipts 35,450 By Annual meet Expenses 18,000 To Interest on Investment 22,550 By Annual Dinner Expenses 36,000 By Electricity expenses 10,800 Add: Prepaid 1,440 12,240 By Interest & Bank Charges 3,600 By Sports Equipment’s [₹ 64,800 - (₹ 62,400 -7,200)] 9,600 By Balance c/d 60,400 2,93,440 2,93,440 To Balance b/d 60,400 Balance Sheet of Global Sports Club as at 31 st March, 2025 Liabilities Amount ₹ Amount ₹ Assets Amount ₹ Amount ₹ Subscription received in advance 6,480 Sports Ground 2,40,000 Audit Fee Outstanding 6,000 Investments 2,05,000 Salaries Outstanding 10,800 Sport Equipment: As per last Balance Sheet 62,400 Bank Loan 48,000 Additions 9,600 Capital Fund as per balance sheet on 31 st March, 2024 (WN - 1) 4,81,960 72,000 Add: Surplus for2024-25 36,400 5,18,360 Less: Depreciation (7, 200) 64,800 Subscription Outstanding 18,000 Prepaid Electricity expenses 1,440 Cash in hand 60,400 5,89,640 5,89,640 Working Note: 1. Balance Sheet of Global Sports Club as at 31 st March, 2024 Liabilities ₹ Assets ₹ Subscriptions received in advance 10,800 Sports Ground 2,40,000 Salaries outstanding 9,600 Sports Equipment 62,400 Audit fees Outstanding 4,800 Subscriptions Outstanding 14,400 Bank Loan 48,000 Cash in hand 33,360 Capital Fund (balancing figure) 4,81,960 Investment 2,05,000 5,55,160 5,55,160 2. Calculation of Subscription received during the year: Subscription as per Income and Expenditure Account 1,80,000 Add: Outstanding on 31.03.2024 14,400 Received in advance on 31.03.2025 6,480 20,880 2,00,880 Less: Received in advance on 31.03.2024 10,800 Outstanding on 31.03.2025 18,000 (28, 800) Subscription received during the year 1,72,080

Topics: Financial Statements of Not-for-Profit Organisations

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