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

CA Foundation · Accounting · MTP · June 2024
From the following information supplied by Fazilka Club, prepare Receipts and Payments account and Income and Expenditure Account for the year ended 31st March 2024. 01.04.2023 ₹ 31.03.2024 ₹ 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 31-03-2024 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 31-03-2024 Expenditure Particulars ₹ Income Particulars ₹ To Salaries 30,000 By Subscription 1,50,000 Add: Outstanding for 2024 9,000 By Interest on Investment 39,000 Received 7,000 Less: Outstanding for 2023 (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

Topics: Financial Statements of Not-for-Profit Organisations

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic