Answer to Question #160993 in Accounting for Pranjal Karole

Question

Q. The following information relates to Country Sports Club for the year ended 31.3.2020. You are

required to prepare the Receipts and Payment Account for the year ended 31.3.2020 and Balance Sheet

as on that date.

Expenditure Amount in

Rs.

Income Amount in

Rs.

To Salaries 3,36,000 By Subscriptions 8,40,000

To Repairs and Maintenance 88,000 By Receipts from Annual

Sports 3,25,000

Less Expenses for

Sports (2,75,000) 50,000

To Ground Upkeep 1,66,500

To Electricity charges 82,600

To Sports Materials used 1,48,000

To Printing and Stationery 42,200 By entrance fees 1,80,000

To Groundsman Wages 80,000 By interest on 10% Govt.

Bonds

12,000

To Depreciation 1,36,000 By Rent on Hire of Club

Ground

84,000

To Prizes Distributed

(Net of Fund Income) 4,000

By Profit on Sale of Sports

Materials 10,500

By Sale of old Newspaper 3,500

To Surplus Carried to Capital

Fund 96,700

Grand Total 11,80,000 11,80,000

Additional Information:

(a)

Particulars Balances as on

1.4.2019

Balances as on

31.3.2020

Fixed Assets (Net Block) 6,36,000 7,20,000

Stock of Sports Materials 1,24,000 1,38,000

Investments in 10% Govt. Bonds 1,20,000 1,20,000

Subscriptions Received in Advance 64,000 72,000

Outstanding Subscriptions 1,24,000 88,000

Outstanding Repairs Expenses 13,500 24,500

Creditors for Sports Materials 78,600 62,500

Salary paid in Advance 32,000 28,000

Prize Fund 2,40,000 2,40,000

Prize Fund Investments 2,36,000 2,36,000

Bank Balance 54,500 ?

(b) During the year, the club purchased Sports Materials of Rs. 1,80,000 out of which 75% was

Credit Purchase.

(c) 25% of the entrance fees is to be capitalized.

(d) Interest on Govt. Bond is received half yearly on 30th June and 31st Dec. each year.

(e) Prize fund income earned during the year Rs. 36,000 and Prizes distributed during the year

Rs. 40,000.

Answer 1

Dear Pranjal Karole , your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order