Accounts from Incomplete RecordsQ-8 | Accounts from Incomplete RecordsQuestion 5145 of 24
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From the following income and expenditure account of a Club for the year-ending 31 March, 2024, you are required to prepare receipt and payment account for the year ending 31 March, 2024 and Balance Sheet as on 1 April, 2023. INCOME AND EXPENDITURE ACCOUNT For the year ending 31st March, 2024 Expenditure Amount Income Amount To Lawn Maintenance To General Expenses To Stationery (depreciation) To Depreciation on Sports Material To Honorarium To excess of income over expenditure 42,000 13,000 1,500 22,000 10,400 44,500 By Subscription By Admission Fees By Sports Material (sale of 2nd Hand Material) By Entertainment 1,05,000 12,000 2,400 14,000 1,33,400 1,33,400 Additional information 1/04/2023 31/03/2024 Cash at bank 60,000 - Stock of sports material 30,000 - Tournament Fund (after deducting tournament expenses of 14,000) - 6,000 Donations for club Building - 1,40,000 Subscription Due 10,000 15,000 Stationery Stock 4,000 - Stationery was depreciated by 25% and Sports material by 50%, [Jan. 2025, 10 Marks]

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Detailed Solution & Explanation

In the Books of A Club Receipt & Payment Account for the year ended 31st March, 2024 Particulars Amount Particulars Amount To Balance b/ d To Subscription 1,05,000 + O/s at beg 10,000 - Out at end (15,000) To Admission fees To Sale of sports Material To Entertainment To Tournament Fund Receipt To Donations for building 60,000 1,00,000 12,000 2,400 14,000 20,000 1,40,000 By Lawan Maintenance By General Expenses By Stationery By Purchase of Sports Material By Honorarium By Tournament expenses By Balance c/ cl (Bal. fig.) 42,000 13,000 2,000 14,000 10,400 14,000 2,53,000 3,48,400 3,48,400 Balance Sheet as on 1st April, 2023 Liabilities Amount Assets Amount Tournament Fund Donations for Building Capital Fund 1,04,000 Add: Surplus 44,500 6,000 1,40,000 1,48,500 Cash at Bank Stock of sports material Subscription due Stationery Stock 2,53,000 22,000 15,000 4,500 2,94,500 2,94,500 Balance Sheet as on 1st April, 2022 Liabilities Amount Assets Amount Capital Fund (bal. fig.) 1,04,000 Cash at Bank Stock of sports material Subscription due Stationery Stock 60,000 30,000 10,000 4,000 1,04,000 1,04,000 Working Note: - 1. Stationery Purchased during the year 25% Depreciation= 1,500 Total Stock = 1500 / 25 x 100 = 6,000 At Beginning = 6,000 – 4,000 = 2,000 2. Sports Material Purchased during the year 50% Depreciation = 22,000 Total Stock = 22000 / 50 x 100 = 44,000 At Beginning = 44,000 – 30,000 = 14,000 Note: Sale of second-hand sports material is taken as profit on sale, assuming their book value as Nil.

About This Chapter: Final Accounts

Paper

Paper 1: Accounting

Weightage

25-30%

Key Topics

Sole Proprietor, NPO, Manufacturing

This chapter covers Sole Proprietor, NPO, Manufacturing and is part of Paper 1: Accounting in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 25-30% weightage. Focus on understanding core concepts rather than memorizing.

Key Concepts to Understand

Depreciation

Allocation of the cost of a tangible fixed asset over its useful life due to wear and tear, efflux of time, or obsolescence.

Balance Sheet

A statement showing the financial position of a business at a particular date, listing all assets on one side and all liabilities and capital on the other side. It is not an account but a statement.

Related Comparison Tables

Revenue Expenditure vs Capital Expenditure: AccountsTrading Account vs P&L Account: Final Accounts ExplainedSLM vs WDV Depreciation: CA Foundation Accounts

More Questions from Accounts from Incomplete Records

From the following income and expenditure account of a Club for the year-ending 31 March, 2024, you are required to prepare receipt and payment account for the year ending 31 March, 2024 and Balance Sheet as on 1 April, 2023. INCOME AND EXPENDITURE ACCOUNT For the year ending 31st March, 2024 Expenditure Amount Income Amount To Lawn Maintenance To General Expenses To Stationery (depreciation) To Depreciation on Sports Material To Honorarium To excess of income over expenditure 42,000 13,000 1,500 22,000 10,400 44,500 By Subscription By Admission Fees By Sports Material (sale of 2nd Hand Material) By Entertainment 1,05,000 12,000 2,400 14,000 1,33,400 1,33,400 Additional information 1/04/2023 31/03/2024 Cash at bank 60,000 - Stock of sports material 30,000 - Tournament Fund (after deducting tournament expenses of 14,000) - 6,000 Donations for club Building - 1,40,000 Subscription Due 10,000 15,000 Stationery Stock 4,000 - Stationery was depreciated by 25% and Sports material by 50%, [Jan. 2025, 10 Marks]

Statement of Affairs and Balance Sheet.

Single Entry System & Double Entry System

In net worth method profit or loss of the business is calculated by preparing trading and profit & loss account.

As per Companies Act, 2013, a company may prepare its records under single entry system.

Closing Capital means Opening Capital + Additional Capital + Drawings Profit.

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