From the following information supplied by Raipur Club, prepare Receipts and Payments account and Income and Expenditure Account for the year ended…

CA Foundation · Accounting · MTP · September 2025
From the following information supplied by Raipur Club, prepare Receipts and Payments account and Income and Expenditure Account for the year ended 31st March, 2025. 01.04.2024 ₹ 31.03.2025 ₹ Outstanding subscription 70,000 1,00,000 Advance subscription 12,500 15,000 Outstanding salaries 7,500 9,000 Cash in Hand and at Bank 55,000 ? 10% Investment 70,000 35,000 Furniture 14,000 7,000 Machinery 5,000 10,000 Sports goods 7,500 12,500 Subscription for the year amount to 1,50,000/-. Salaries paid - 30,000. Face value of the Investment was - 87,500,50% of the Investment was sold at 80% of Face Value. Interest on investments was received - 7,000. Furniture was sold for 4000at the beginning of the year. Machinery and Sports Goods purchased and put to use at the last date of the year. Charge depreciation @15% p.a. on Machinery and Sports goods and @10% p.a. on Furniture. Following Expenses were made during the year: Sports Expenses :25,000 Rent :12,000 out of which - 1,000 outstanding Misc. Expenses :2,500

Suggested Answer and Working Notes:

Receipts and Payments Account for the year ended 31-03-2025 Receipts ₹ Payments ₹ To balance b/d By Salaries 30,000 Cash and bank 55,000 By Purchase of sports goods 5,000 To Subscription received (W.N.1) 1,22,500 ₹ (₹ 12,500 -7,500) To Sale of investments (W.N.2) 35,000 By Purchase of machinery 5,000 To Interest received on investment 7,000 ₹ (₹ 10,000-5,000) To Sale of furniture 4,000 By Sports expenses 25,000 By Rent paid 11,000 ₹ (₹ 12,000 -1,000) By Miscellaneous expenses 2,500 By Balance c/d Cash and bank 1,45,000 2,23,500 2,23,500 Income and Expenditure account for the year ended 31-03-2025 Expenditure Particulars ₹ Income Particulars ₹ To Salaries By Subscription 1,50,000 Salaries Paid 30,000 By Interest on Investment Add: Outstanding for2025 9,000 39,000 Received 7,000 Less: Outstanding for2024 (7, 500) 31,500 Accrued (W.N.5) 1,750 8,750 To Sports expenses 25,000 To Rent 12,000 To Miscellaneous exp. 2,500 To Loss on sale of furniture (W.N.3) 3,000 To Depreciation (W.N.4) Furniture 700 Machinery 750 Sports goods 1,125 2,575 To Surplus 82,175 1,58,750 1,58,750 Working Notes: 1. Calculation of Subscription received during the year 2024-25 Particulars ₹ Subscription due for2024-25 1,50,000 Add: Outstanding of2024 70,000 Less: Outstanding of2025 (₹ 1,00,000) Add: Subscription of2025 received in advance 15,000 Less: Subscription of2024 received in advance (12, 500) 1,22,500 2. Calculation of Sale price and profit on sale of investment Face value of investment sold:87,500 ×50% = 43,750 Sales price:43,750 ×80% = 35,000 Cost price of investment sold:70,000 ×50% = 35,000 Profit/loss on sale of investment:35,000 -35,000 = NIL 3. Loss on sale of furniture Particulars ₹ Value of furniture as on 01-04-2024 14,000 Value of furniture as on 31-03-2025 7,000 Value of furniture sold at the beginning of the year 7,000 Less: Sales price of furniture (4, 000) Loss on sale of furniture 3,000 4. Depreciation Furniture -7,000 ×10% = 700 Machinery -5,000 ×15% = 750 Sports goods -7,500 ×15% = 1,125 5. Interest accrued on investment Particulars ₹ Face value of investment on 01-04-2024 87,500 Interest @10% 8,750 Less: Interest received during the year (7, 000) Interest accrued during the year 1,750 Note: It is assumed that the sale of investment has taken place at the end of the year.

Topics: Financial Statements of Not-for-Profit Organisations

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