(Outstanding Expenses and Prepaid Expenses) From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31.03.2020 and Balance sheet as on that date for "Morya Sports Club" Thane.
13. (Outstanding Expenses and Prepaid Expenses) From the following information supplied to you, prepare Income and Expenditure Account for the year ending on 31.03.2020 and Balance sheet as on that date for "Morya Sports Club" Thane.
Balance Sheet as on 01.04.2019
Liabilities | Amount | Amount | Assets | Amount | Amount |
Capital Fund |
| 64,500 | Machinery |
| 69,000 |
Bank Overdraft |
| 38,000 | Outstanding Subscriptions |
| 8,000 |
Outstanding Salary |
| 4,000 | Prepaid Insurance Premium |
| 2,000 |
|
|
| Furniture |
| 15,000 |
|
|
| Cash in Hand |
| 12,000 |
|
|
| Outstanding Locker’s Rent |
| 500 |
|
|
|
|
|
|
|
| 1,06,500 |
|
| 1,06,500 |
Receipts and Payments Account for the year ended 31.03.2020
|
Dr. Cr. |
Receipts | Amount | Amount | Payments | Amount | Amount |
To Balance bd |
| 12,000 | By Balance b/d (Bank Overdraft) |
| 38,000 |
To Subscription |
| 1,05,000 | By Salary |
| 17,000 |
To Entrance Fees (Capitalized) |
| 9,300 | By Insurance Premium |
| 11,000 |
To Locker Rent |
| 1,500 | By Interest |
| 1,400 |
To Donations (Capitalized) |
| 800 | By refreshment Expenses |
| 4,200 |
|
|
| By Furniture |
| 30,000 |
|
|
| By Balance c/d |
|
|
|
|
| Cash in Hand |
| 6,500 |
|
|
| Cash at Bank |
| 20,000 |
|
|
|
|
|
|
|
| 1,28,600 |
|
| 1,28,600 |
Adjustments:
Solution:
In the Books of "Morya Sports Club" Thane.
Income and Expenditure Account for the year ending 31.03.2020
|
Dr. Cr. |
Expenditure | Amount | Amount | Income | Amount | Amount |
To Insurance Premium | 11,000 |
| By Subscription | 1,05,000 |
|
(-) Prepaid Insurance Premium (CY) | 2,500 |
| (-) Outstanding Sub. (LY) | 3,000 |
|
(+) Prepaid Insurance Premium (LY) | 2,000 | 10,500 | (+) Prepaid Sub. (CY) | 14,000 | 1,16,000 |
To Interest |
| 1,400 | By Locker Rent | 1,500 |
|
To Refreshment exp. |
| 4,200 | (+) Outstanding Locker Rent | 400 |
|
|
|
| (-) Prepaid Locker Rent (LY) | 500 | 1,400 |
To Depreciation on Furniture |
| 3,000 |
|
|
|
To Surplus |
| 84,800 |
|
|
|
|
| 1,17,400 |
|
| 1,17,400 |
|
|
|
|
|
|
Balance Sheet as on 31.03.2020
|
Cr. Dr. |
Liabilities | Amount | Amount | Assets | Amount | Amount |
Capital Fund | 64,500 |
| Machinery |
| 69,000 |
(+) Entrance Fees | 9,300 |
| Furniture | 15,000 |
|
(+) Donations | 800 |
| (+) additional | 0,000 |
|
(+) Surplus | 84,800 | 1,59,400 |
| 45,000 |
|
|
|
| (-) Depreciation | 3,000 | 42,000 |
Bank Overdraft |
| 38,000 |
|
| 14,000 |
Outstanding Salary |
| 4,000 | Outstanding Sub (CY) |
| 14,00 |
|
|
| Outstanding SUB (LY) (8,000 – 3,000) |
| 5,000 |
|
|
| Outstanding Locker Rent (CY) |
| 400 |
|
|
| Outstanding Locker Rent (LY) |
| 500 |
|
|
| Prepaid Insurance Premium (CY) |
| 2,000 |
|
|
| (+) Prepaid Insurance Premium (Ly) |
| 2,500 |
|
|
|
|
|
|
|
|
| Cash in Hand | 6,500 |
|
|
|
| Cash at Bank | 20,000 | 26,500 |
|
|
|
|
|
|
|
| 1,59,400 |
|
| 1,59,400 |
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