From the following Income and Expenditure account and the Balance sheet of a club, prepare its Receipts and Payments Account and Subscription…
CA Foundation · Accounting · MTP · September 2025
From the following Income and Expenditure account and the Balance sheet of a club, prepare its Receipts and Payments Account and Subscription Account for the year ended 31st March 2025: Income & Expenditure Account for the year 2024-25 Particulars ₹ Particulars ₹ To Upkeep of ground 11,000 By Subscriptions 19,052 To Printing 1,100 By Sale of Newspapers (Old) 286 To Salaries 11,100 By Lectures (Fee) 1,650 To Depreciation on furniture 1,100 By Entrance Fee 2,145 To Rent 1,660 By Misc. Income 440 By Deficit 2,387 25,960 25,960 Balance sheet as at 31st March 2025 Liabilities ₹ Assets ₹ Subscription in advance (2025-26) 110 Furniture 9,900 Prize Fund: Ground and Building 51,700 Opening balance 27,500 Prize Fund Investment 22,000 Add: Interest 1,100 Cash in Hand 2,530 28,600 Subscription (outstanding) (2024-2025) 770 Less: Prizes given 2,200 26,400 General Fund: Opening balance 62,062 Less: Deficit 2,387 59,675 Add: Entrance Fee 715 60,390 86,900 86,900 The following adjustments have been made in the above accounts: 1) Upkeep of ground 660and printing 264relating to 2023-24 were paid in 2024-25 2) One fourth of entrance fee has been capitalized by transfer to General Fund 3) Subscription outstanding in 2023-24 was 880and for 2024-25770 4) Subscription received in advance in 2023-24 was 220and in 2024-25 for 2025-26 was - 110 5) Furniture was purchased during the year.
Suggested Answer and Working Notes:
Receipts and Payments A/c for the year ending 31st March, 2025 Receipts ₹ Payments ₹ To Balance b/d (bal fig) 16,126 By Upkeep of Ground (WN 1) 11,660 To Subscriptions: 19,052 By Printing (WN 2) 1,364 To Sale of Newspapers 286 By Salaries 11,100 To Lectures (Fee) 1,650 By Furniture: 9,900 (+) Depreciation 1,100 11,000 To Entrance Fee (WN 3) 2,860 By Rent 1,660 To Miscellaneous Income 440 By Prizes distribution 2,200 To Interest 1,100 By Balance c/d 2,530 Total 41,514 Total 41,514 Subscription A/c Particulars ₹ Particulars ₹ To Outstanding for the year 2023-24 880 By Subscription received in advance for the year 2024-25 220 To Income & Expenditure A/c 19,052 By Bank A/c (Bal fig) 19,052 To Subscription received in Advance for the year 2025-26 110 By Subscription outstanding as on 2024-25 770 Total 20,042 Total 20,042 Working Note 1: Upkeep of Ground A/c Particulars ₹ Particulars ₹ To Bank A/c (bal fig) 11,660 By outstanding expense of 2023-24 660 By Income & Expenditure A/c 11,000 Total 11,660 Total 11,660 Working Note 2: Printing A/c Particulars ₹ Particulars ₹ To Bank A/c (bal fig) 1,364 By Outstanding expenses 264 By Income & Expenditure A/c 1,100 Total 1,364 Total 1,364 Working Note 3: Entrance fees adjustment 1/4th of the entrance fees capitalized by transferred to general fund = 715 ∴ Total entrance fees received = 4 × ₹ 715 = 2,860 2,860 will be posted to debit of receipt & Payment A/c
Topics: Financial Statements of Not-for-Profit Organisations
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