Following is the Receipts and Payments Account of Smart Club for the year ended on 31 st March, 2025: Receipts and Payments Account for the year…

In the books of Smart Club Income and expenditure Account for the year ended on 31 st March, 2025 Expenditure Amount (₹) Income Amount (₹) Salaries and wages 1,65,000 By Subscriptions (W.N.2) 3,84,000 Add: Outstanding Salaries for2025 40,000 By Entrance fees (50% ×₹ 85,000) 42,500 2,05,000 By Excess of expenditure over income 6,000 To Office expenses 35,000 To Depreciation (25% ×₹ 2,50,000) 62,500 To Telephone Charges 28,000 To Electricity charges 32,000 To Travelling and conveyance 65,000 To Match expenses (Excess of Exp. Over collection) 5,000 4,32,500 4,32,500 Balance Sheet of Smart Club as at 31 st March, 2025 Liabilities ₹ Assets ₹ Capital Fund: Opening (WN - 1) 2,46,000 Sports Equipment 2,50,000 Less: Deficit for the year (6, 000) Less: Depreciation (62, 500) 2,40,000 1,87,500 Subs received in advance 35,000 Cash at bank 1,45,000 Outstanding Salaries 40,000 Subscription outstanding 25,000 Match fund (WN.3) - Entrance Fees* 42,500 3,57,500 3,57,500 *Alternatively, entrance fees can also be added to the Capital Fund. In that case capital fund shall be - 2,82,500. Working Note 1: Balance Sheet as at 1 st April, 2024 Liabilities ₹ Assets ₹ Match fund 30,000 Cash at Bank 2,50,000 Subs received in advance 14,000 Capital Fund (Balancing Figure) 2,46,000 Subscription Outstanding in2024 40,000 2,90,000 2,90,000 Working Note 2: Calculation of Subscription as per Income & Exp a/c Particulars ₹ Subscription as per Receipt & Payment A/c 4,20,000 Add: Subscription Outstanding for2025 25,000 Subscription received in advance2024 14,000 Less: Subscription Outstanding for2024 (40, 000) Subscription received in advance2025 (35, 000) 3,84,000 Working Note 3: Match Expenses/Fund to be shown in Income & Expenditure A/c and Balance sheet as on 31 st Mar’₹ 25 Income & Expenditure A/c Balance-sheet Particulars ₹ Match Fund 30,000 30,000 Add: Donation for Match fund 55,000 55,000 Add: Proceeds from Sale of tickets 20,000 20,000 Less: Match expenses adjusted (₹ 1,10,000) (₹ 1,05,000) Balance (5, 000) Nil