Question

Question No.03- Islamabad Club prepared the following Receipts and Payments Account for the
year ended 31st December 2015. Marks (10 + 10)
Receipts Rs. Payments Rs.
To balance b/d 7,600 By Sports Equipment purchased on
1.10.2015
30,000
To subscriptions By Postage and stationery 700
2014 2,000 By Salaries and wages 5,000
2015 37,000 By upkeep of ground 1,000
2016 3,000 By electric charges 2,300
To admission fees 4,000 By tournaments expenses 8,000
To Lockers rents 1,000 By balance c/d 8,800
To interest on Govt. Securities 1,200
55,800 55,800
The fixed assets of the club on 1st January 2015 include the following: sports equipments Rs. 40,000,
furniture Rs. 6,000. 10% Govt.Securities Rs. 16,000 and Club ground Rs. 25,000.
Prepare income and expenditure Account of Islamabad Club for the year ended 31st December,
2015 and a Balance Sheet as at that after taking into account the following information.
(a) Subscriptions for 2015 collected in 2014 for Rs. 1,500.
(b) Subscriptions for 2015 are outstanding for Rs.1,000
(c) Depreciation to be provided at 15% p.a. on sports equipment and 7.5% p.a. on furniture.

Answer 1

Islamabad Club Income and Expenditure Account For the year ended December 31, 2015
Revenues
Subscriptions		Rs. 39,500
Admission fees		4,000
Locker rent		1,000
Interest income		1,600
Total revenues		46,100
Expenditure
Tournament Expenses	8,000
Postage and Stationery	700
Salaries and Wages	5,000
Upkeep of ground	1,000
Electric Charges	2,300
Depreciation: Sports Equipment	7,125
Depreciation: Furniture	450
Total Expenditure		24,575
Net Surplus		Rs. 21,525

Islamabad Club Balance Sheet December 31, 2015
Liabilities & Equity		Assets
Capital		Cash	8,800
Beginning balance*	95,100	Subscriptions Receivable	1,000
Add: Net Surplus	21,525	Interest Receivable	400
Capital, Ending	116,625	10% Government Securities	16,000
		Sports Equipment, net	62,875
Subscriptions received in advance	3,000	Furniture, net	5,550
		Club Ground	25,000
Total Capital and Liabilities	Rs.119,625	Total Assets	Rs.119,625

Workings:

Beginning balances
Cash	7,600
Sports Equipment	40,000
Furniture	6,000
10% Govt. Securities	16,000
Club Ground	25,000
Subscriptions Receivable	2,000
Total Assets		96,600
Less: Subscriptions received in advance		1,500
Beginning balance, Capital		Rs. 95,100