Master Problems

1. A summary of Receipts & Payments of Fresh Fitness Club for the year-ended 31.12.97
is given below.
Receipts Amount Payments Amount
To Balance B/d By Balance B/d
Cash in Hand 10,000 Bank OD 7,500
To Subscription 122,500 By Payment for Medicines 9,000
To Donations 17,500 By Honorarium to Doctors 32,500
To Interest on Invst. By Salaries (13 Months) 45,500
(@12% for 5 month) 5,000 By Rent (9 Months) 18,000
To Sale of Furniture By Telephone Exp. 8,500
(on 1/10/1997, Book By Printing & stationery 13,000
Value Rs. 3000) 1750 By Equipment purc.

To Sale Of Equipment (on 1.12.1997) 40,000

(on 1/4/1997, Book Value By Charity show Exp. 6,000
Rs. 10,000) 3,000 By Interest on loan 3,500
To Interest on 10% building By General Exp. (97) 8,000
Fund Investment 12,500 By General Exp. (96) 2,500
To Locker Rent 5,000 By Prizes purchased 7,000
To Legacies received (to be By Building 60,000
capitalized) 25,000 By 9% RBI Bond
To Charity show Proceeds 7,500 (on 1.7.1997) 10,000
To Donation for Prizes 12,500 By Bal. (31.12.1997) 26,250
To Donation for Building 75,000
297,250 297,250
Additional information (in Rs.)
1.1.97 31.12.97
Subscription Due 2500 6000
Subscription received in Advance 3000 5500
Stock of medicine 2500 1500
Amount due to medical supplier 4000 7500
Value of Equipment 30000 ?
Value of Buildings 100000 ?
Furniture 45000 ?
Stock of Stationery 500 1000
Building Fund 125000 ?
Prize Fund 15000 ?
10 % Building Fund investment 125000 125000
Locker Rent Due 2000 ---
10% Loan from Mr. Akash 50000 50000
(Taken on 1/1/1994)
12% Investment 100000 100000

Note:
1. After paying above mentioned general expenses still outstanding general expenses for
the year 1997 Rs. 2500; 1996 Rs. 1250.
2. Provide Depreciation on fixed assets @ 10% PA.
 You are required to prepare Income & Expenditure A/c for the year ended 31st Dec.
1997 & Balance Sheet as on that date.

2. A summary of Receipts & Payments of Fresh Fitness Club for the year-ended 31.12.97
is given below.
Receipts Amount Payments Amount
To Balance B/d By Balance B/d
Cash in Hand 40,000 Bank OD 37,500
To Subscription 250,000 By Payment for Medicines 9,000
To Donations 17,500 By Honorarium to Doctors 32,500
To Interest on 12% Invest. 5,000 By Salaries (13 45,500
To Sale of Furniture (on Months) By Rent (9 18,000
1/10/1997, Book value Rs. 3000) 1750 Months) 8,500
To Canteen Receipts 50,000 By Telephone Exp. 13,000
To Sale of Books 25,000 By Printing &
stationery By
Equipment purc.
To Sale Of Equipment (on 1.10.1997) 40,000
(on 1/4/1997, Book Value By Canteen Expenses 25,000
Rs. 10,000) 3,000 By Purchase of Books 12,500
To Income on 12% building By Charity show Exp. 6,000
Fund Investment 12,500 By Interest on loan 3,500
To Locker Rent 5,000 By General Expenses 10,500
To Legacies received (to be (Including For the year 1996)
capitalized) 25,000 By Prizes purchased 7,000
To Charity show Proceeds 7,500 By Building 60,000
To Donation for Prizes 12,500 By 9% RBI Bond
To Donation for Building 75,000 (on 1.7.1997) 10,000
By Watch man salary 17,500
By Club Manager Salary 20,000
By Bal. (31.12.1997) 153,750
297,250 297,250
Additional information (in Rs.)
1.1.97 31.12.97
Subscription Due 2500 6000
Subscription received in Advance 3000 5500
Stock of medicine 2500 1500
Creditors ( For Medical Supplies) 4000 7500
Equipment 30000 ?
Buildings 100000 ?
Furniture 45000 ?
Stock of Stationery 500 1000
Building Fund 125000 ?
Prize Fund 15000 ?
12 % Building Fund investment 125000 125000
Locker Rent Due 2000 1,000
12% Loan from Bank of Chengat 50000 50000
(Taken on 1/1/1994)
12% Investment 100000 100000
Note: After paying above mentioned general expenses still outstanding general expenses
for the year 1997 Rs. 2500; 1996 Rs. 1250.
3. Provide Depreciation on fixed assets @ 10% PA.
You are required to prepare Income & Expenditure A/c for the year ended 31st Dec.
1997 & Balance Sheet as on that date.