(1) From the following trail balance of Jaltarang club as at 31-3-2010.

Prepare an income
and expenditure account and balance sheet as on 31-3-10.
Trail balance as on 31-3-10
Particulars Debit Credit
Capital fund - 324000
Salary 24800 -
Postage –telegram 2880
Cash balance 12000
Furniture 28800
Building 216000
Subscription 192000
Entrance fees 8640
Donations 37440
Education fund 72000
Fixed deposits in banks 48000
Investments 53760
Sports equipment 132000
Purchase of sports equipment (1-1-2010) 27840
Purchase of furniture 12000
Honorarium of secretary 28000
Sundry expenses 7680
Repairs 1920
Interest on investments 5440
Income from education fund investments 6720
Income from canteen 62400
Sundry income 4400
Sale of waste paper 960
Income from entertainment program 36000
Contribution to magazine 6480
Freeship from education fund 9600
Investments of education fund 72000
Canteen expenses 44400
Expenses of entertainment program 21840
Total 750000 750000
Adjustments:
1. Salary outstanding rs 7200.
2. Subscription due but not received rs 12000 and subscription received in advance of rs
14400.
3. One-half of the entrance fess is to be capitalized.
4. Depreciate sports equipments at 10% per annum and furniture at 6% per annum.
ANS: excess of income over expenditure rs 141936, total of balancesheetrs 598896, dep
on furniture rs 2088(RS 1728 on old furniture + rs 360 on new purchase) dep on sports
equipmentsrs 13896( Rs 13200 on old + rs 696 on new purchase) net income from
subscription rs 189600. Closing capital fund rs 507696.

(2) From the following trial balance of the Ahemdabad GYMKHANA as at 31-3-10 and
other information , prepare an income and expenditure account and balance sheet as
on 31-3-10:
Trail balance as on 31-3-2010
Sports equipments 100000 Income from entertainment 6000
program
Furniture and fixtures 16000 Subscriptions 64000
Insurance premium 4800 Entrance fees 44000
Salary 46000 Income from souvenir 7200
Advertisement expenses 6400 Prize fund 6600
Club building 189600 Income from tournament 1920
Printing and stationery 6400 Income from prize fund 200
Cash and bank 31200 Capital fund 338960
Sundry expenses 2400 Rent received 12000
Purchase of 10% investments (1- 80000 Donations 16000
10-09)
Tournament expenses 1520 Contribution`s for president party 4600
Purchase of furniture (1-10-09) 3200 Sale of old furniture (book value rs 840
1280)
Audit fees 400 Outstanding sundry expenses 640
(2008-09)
Expenses of entertainment 4000
program
Printing of expenses of souvenir 3200
Expenses of president party 3000
Prize distribution 1920
Expenses on prize dist. Function 920
subscription due (2008-09) 2000
Total 502960 Total 502960
Additional information:
1. Sundry expenses include RS 640 paid for last year and rs 300 is outstanding for current
year.
2. Subscription outstanding is rs 8000 and received for last year rs 2000. Subscription
received in advance rs 800.
3. Insurance premium rs 2400 is paid for year ending 30-09-10.
4. Half the entrance fees is to be capitalized.
5. Rs 232 is outstanding for souvenir printing expenses and outstanding expenses salary is rs
800.
6. Depreciate sports equipment and furniture by 10%, No depreciation is to be calculated on
furniture sold.
Ans: Excess of income and expenditure rs 35636; total of balance sheet RS 420288:
closing capital fund Rs 412596; depreciation on furniture rs 1632; 10% on 14270,
(16000 – 1280 sold) = Rs 1472 + 160 on new furniture = 1632) interest due on
investments rs 4000: prepaid insurance rs 1200 closing balance of prize fund rs 3960.
Now the outstanding sundry expenses and subscription for last year will not be
shown in current year`s balance sheet : loss on sale of furniture of rs 440: balance of
furniture a/c rs 16288.

(3) From the following information of Kumar club, prepare income and expenditure
account for Year ended on 31st December, 2009 and balance sheet as on that date
Balance sheet as on 31st December, 2008
Liabilities Amt Assets Amt
Capital fund 34000 Sports equipments 21600
Prize fund 10000 10% prize fund investments 10000
Subscription received in advance 3000 Outstanding subscription 1000
Salaries outstanding 500 Furniture 6000
Prepaid sundry expenses 400
Cash on hand 8500
47500 47500

Receipts and payments account

For the year ended on 31st December 2009
Receipts Amt Payments Amt
Opening cash balance 8500 Salaries 13500
Subscription 22000 Sports equipment purchased 6400
Interest on prize fund investments 500 Distribution of prizes 800
Sale of old furniture ( book value rs 650 Purchase of furniture (1-10-09) 4000
1000)
Income from tournament 3250 Rent 1200
Entrance fees 1600 Sundry expenses 1500
Tournament expenses 2800
Closing cash balance 6300
36500 36500
Other information: 31-12-09
1. Subscription outstanding 4000
2. Subscription received in advance 2000
3. Salaries paid in advance 1000
4. Sundry expenses outstanding 200
5. Value of sports equipment 21000
6. Furniture is to be depreciated at 10% per annum.
7. Half of the entrance fees is to be depreciated
ANS: excess of income over expenditure rs 4000: total od B/s rss 51200: net
subscription rs 26000 (22000 +3000+ 4000) = 29000 – 1000 – 2000): salary exp 12000:
loss on sale of furniture rs 350, dep on sports equipment rs 7000: closing capital fund rs
38800: prize fund rs 10200 to be shown on liabilities side in B/s.

(4) Dhanduka youth club provides you the following information

Balance sheet as on 31-3-09
Liabilities Amt Assets Amt
Capital fund 2200 Furniture 10000
0
Subscription received in advance 1500 10% investments 5000
Unpaid rent 1000 Sports equipments 6000
Unpaid stationery expenses 500 Bank balance 2000
Prepaid salaries 1500
Subscription due 500
2500 25000
0
Receipts and payments account for the year ended on 31-3-2010
Receipts Amt Payments Amt
To balance b/d (bank balance on 1-4- 2000 By salaries 2500
09)
To donations 4000 By rent 5000
To entrance fees 1000 By purchase of sports equipments 4000
(1-10-09)
To subscription 8000 By expenses of entertainment 3000
program
To interest on investments 400 By postage 200
To income from entertainment 4600 By stationery program 1200
program
By balance C/d bank balance on 4100
31-3-10
2000 20000
0
Additional information:
1. Outstanding salaries for the current year rs 800.
2. Subscription due but not received for current year rs 1000.
3. The whole amount of donations and one-half amount of entrance fees are to be
capitalized.
4. Furniture and .sports equipment are to be depreciated at the rate of 10% per annum.
5. Stock of stationery as on 31-3-2010 amounted to rs 200.
From the above information prepare
 Income and expenditure account of club for year ended on 31-3-10
 B/s of club as on 31-3-10.
ANS: excess of income over exp. Rs 1300, total of B/S 28600, closing capital fund rs
27800 ( 22000 + donation rs 4000 + entrance fees rs 500 + excess of income rs 1300), net
subscription rs 10000, dep on sports equipment rs 800 (600+200) stationery rs 500 , net
salary exp of rs 4800.

(5) Receipts and payments account for the year ended on 31-12-09
Receipts Amt Payments Amt
To balance b/d ( bank balance as on 7000 By salary 13000
1-1-09)
To subscription By rent taxes 1800
2008 180 By stationery 900
2009 17400 By purchase of sports equipment (1- 6000
2010 120 7-09)
17700 By sundry expenses 2000
To income from entertainment 4000 By 10% bank deposit (1-10-09) 5000
To interest on 12% investments for 1200 By expenses of entertainment 2000
whole year program
To donation 2000 By balance c/d ( bank balance as on 1200
31-12-09)
Total 31900 Total 31900
Additional information:
1. There are 300 members in the club and each members gives rs 60 subscription yearly.
2. Outstanding salary as on 31-12-08 was of rs 1000 which was rs 1500 as on 31-12-09
3. Stock of stationery as on 31-12-08 was of rs 100 which was rs 150 as on 31-12-09.
4. Sports equipment as on 31-12-08 was of rs 10000 while the value of the sports equipment
as on 31-12-09 was of rs 14000.
 From the above information prepare:
balance sheet as on 1-1-09
 Income and expenditure account for the year ended on 31-12-09
 Balance sheet as on 31-12-09
ANS: excess of income over expenditure rs 1175. Total of B/s rs 31075, opening capital
fund rs 26280, salary rs 13500, stationeryrs 850.

(6) The following are the balances in the books of ‘ NAVNATH’ club bilimora on 1st
January 2009.
Land and building 125000
Outstanding expenses 6500
Investment in 8% government securities 40000
Subscription not received 5500
Subscription received in advance 2500
10% bank loan (credit) 50000
Receipts and payments account for the year ending on 31-12-09
Receipts Amt Assets Amt
To opening balance 31000 By expenses
To subscription : 2008 5000
2008 4000 2009 10000 15000
2009 21000 By furniture ( 1-7-09) 30000
2010 1500 26500 By interest on 10% bank loan 3000
To entrance fees 3500 By salary 14500
To donation 7000 By expenses of program 21000
To income from program 51500 By closing balance 36000
11950 119500
0
Adjustment:
1. Subscription not received for the year 2009 is rs 4500/-
2. Expenses outstanding for the year 2009 are rs 1000/-
3. Salary outstanding for the year 2009 is rs 1500/-
4. Capitalize full amounts of entrance fees and donations.
5. Calculate 10% depreciation on land and building and furniture.
6. Dr Alpesh sheth gave furniture worth rs 30000/- to the club as donation on 1-4-09 which
is not recorded in books.
Prepare income and expenditure account on ‘NAVNATH’ club billimora for year ending 31-
12-09 and B/s as on that date.
ANS: excess of income over expenditure rs 13450 , opening capital fund rs 142500, total of
B/s rs 253950, closing capital fund rs 196450 , subscription rs 28000, interest due from
securities rs 3200.
 (7) Radhanpur Gymkhana club provides you the following information:
Receipts and payments account for year ended 31-12-06
Receipts Amt Payments Amt
To balance c/d 67500 By salary 65000
Subscription Rent and taxes 9000
2005 Stationery exp 4500
900
2006 Purchase of sports equipment (1-7- 30000
87000 06)
2007 88500 Sundry expenses 10000
600
Income from entertainment 25000 12% bank deposit (1-10-16) 25000
program
Interest on 12% investment for 6000 Expenses for entertainment 12500
whole year program
Donation 10000 Balance c/d (31-12-06) 41000
Total 197000 Total 197000
Additional information:
1. There are 300 members in the club and each members gives rs 300 annual
subscription.
2. Outstanding salary as on 31-12-05 was of rs 5000 which was rs 7500 as on 31-12-06
3. Stock of stationery as on 31-12-05 was of rs 500 which was rs 750 as on 31-12-06.
4. Sports equipment as on 31-12-05 was of rs 50000 while the value of sports equipment
as on 31-12-06 was of rs 70000.
From the above information prepare:
I. Balance sheet as on 1-1-2005
II. Income and expenditure account for the year ended on 31-12-06.
III. Balance sheet as on 31-12-2006.
Ans : excess of income rs 16000: total of closing b/s rs 137200: closing capital fund rs
127200: loss on sale of furniture rs 1000: depreciation on furniture rs 800 ( 10000-2000
= 8000 X 10%); net subscription rs 60000: salary of current year rs 33000. Depreciation
on sports equipmentsrs 5000 (30000 + 30000 = 60000 -55000)
 (8) The following are the balances in books of balaji sports club on 1st January 2009.
Investments in 5% government securities rs 10000, land and building rs 50000, outstanding
expenses rs 3000. 10% bank loan (credit) rs 20000, subscription received rs 1000,
subscription received in advance rs 2000.
Receipts Amt Payments Amt
To opening balance (1-1-2009) 15000 By expenses
To subscription 2008 1000
2008 1000 2009 20000 21000
2009 25000 By furniture (1-7-09) 10000
2010 2000 28000 By interest on bank loan 500
To entrance fees 3000 By salaries 15000
To donation 5000 By expenses of program 12000
To income from program 20000 By closing balances 12500
Total 71000 Total 71000
Adjustments:
I. Subscription not received for the year 2009 is rs 5000
II. Expenses outstanding for the year 2009 are rs 3000.
III. Salary outstanding for the year 2009 is rs 2000
IV. Capitalize full amounts of entrance fees and donations.
V. Calculate 10% depreciation on land and building and furniture.
VI. Sachin gave furniture worth rs 10000 to the club ass donation on 1-7-09 which is not
recorded in books
Prepare income and expenditure account of Balaji sports club for the year ended on 31-12-
2009 and balance sheet as on that date.
ANS: excess of expenditure over income rs 7500: total of final B/s rs 92000; opening
capital fund rs 51000, which would be obtained by preparing opening b/s: closing
capital fund rs 61500: depreciation of furniture rs 1000 (RS 500 + RS 500): revenue
income of subscription for rs 2009 rs 32000( recdrs 15000 + outstanding rs 5000 + recd
in advance rs 2000); expenses rs 23000: salaries rs 17000: furniture received as
donation to be added to opening capital fund.
Sum no 9
Young star club provides you the following information. Receipts and payments accounts for
the year ended 31-3-10
Receipts Amt Payments Amt
To balance c/d 67500 By salary 65000
Subscription Rent and taxes 9000
2008 – 09 900 Stationery expenses 4500
2009 – 10 87000 Purchase of sports equipment (1- 30000
10-09)
2010 – 11 600 88500 Sundry expenses 10000
Income from entertainment 25000 12% bank deposit (1-1-10) 25000
program
Interest on 12% investments for 6000 Expenses for entertainment 12500
whole year program
Donation 10000 By balance c/d 41000
Total 197000 Total 197000
Additional information:
I. Opening capital fund of the club (1-4-09) rs 163900
II. There are 300 members in the club and each members gives rs 300 annual
subscription.
III. Outstanding salary as on 31-3-09 was rs 5000 which was rs 7500 as on 31-3-10.
IV. Stock of stationery on 31-3-09 was rs 500 which was rs 750 as on 31-3-10.
V. Sports equipment on 31-3-09 was rs 50000 while the value of sports equipments as on
31-3-10 was rs 70000.
From the above information prepare :
 Income and expenditure account for year ended in 31-3-10
 Balance sheet on 31-3-10
ANS: excess of income rs8500 total of B/s rs 190500 , interest due on bank o/d rs 750
( for 3 months) . subscription outstanding rs 3000, depreciation on sports equipment rs
10000.