The following is the Receipts and payments account of Masters Club for the year ended on 31st March, 2026 Receipts and payments A/c for the year…

In the books of Masters Club Income and expenditure Account for the year ended on 31st March, 2026 Expenditure Amount (₹) Income Amount (₹) To Salaries and wages 12,250 By Subscriptions (W.N. 4) 22,000 To Depreciation (W.N. 3) 10,300 By Net proceeds from refreshments (22,000-18,250) 3,750 To Telephone Charges 2,800 By Entrance fees (50% x 26,000) 13,000 To Electricity charges (W.N. 5) 14,000 By Interest on investments 4,550 To Honorarium charges 6,500 By Excess of expenditure over income 2,550 45,850 45,850 Balance sheet as at 31st March, 2026 Liabilities Amount (₹) Assets Amount (₹) Capital as on 31st Mar,25 Sports Equipment 50,500 1,13,880 Furniture 11,180 Less: Deficit (2,550) 1,11,330 Entrance fees 13,000 7% Investments 65,000 Outstanding electricity charges 3,800 Subscription in arrears 5,200 Subscription in advance 4,850 Cash 1,100 1,32,980 1,32,980 Working notes Investments made Income earned during the year 4,550 Rate of interest 7% = 65,000 Balance sheet as at 31st March, 2025 Liabilities Amount (₹) Assets Amount (₹) capital fund (B/f) 1,13,880 Sports Equipment 32,000 Outstanding electricity charges 5,400 Furniture 12,480 Subscription in advance 6,250 7% Investments 65,000 Subscription Outstanding 7,600 Cash 8,450 1,25,530 1,25,530 Calculation of depreciation of Sports equipment Particulars Amount (₹) Sports equipment as on 31st March, 2025 32,000 Add: Purchases during the year 27,500 Less: Closing balance of equipment as on 31st March, 2026 (50,500) Depreciation on sports equipment for the year ended 31st March, 2026 9,000 Calculation of depreciation of Furniture Particulars Amount (₹) Furniture as on 31st, March 2025 12,480 Add: Purchases during the year - Less: Closing balance of equipment as on 31st March, 2026 (11,180) Depreciation on furniture for the year ended 31st March, 2026 1,300 Total Depreciation = ₹ 10,300 (9,000+1,300) Subscription to be credited to income and expenditure account for the year 2026 Dr. Subscription A/c (year ended on 31st March, 2026) Cr. Particulars Amount (₹) Particulars Amount (₹) To Outstanding at the beginning (2025) 7,600 By Advance at the beginning (2025) 6,250 To Income and Expenditure A/c 22,000 By Receipts and payments A/c 23,000 To Advance at the end (2026) 4,850 By Outstanding at the end (2026) 5,200 34,450 34,450 Electricity charges to be debited to Income and expenditure Account Electricity charges paid for year 2026 15,600 Add: Outstanding charges for year 2026 3,800 Less: Outstanding charges for year 2025 (5,400) Electricity charges to be debited to Income and Expenditure A/c 14,000