CA Foundation Exam  >  CA Foundation Questions  >  From the following Receipts and Payments Acco... Start Learning for Free
From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:?
Most Upvoted Answer
From the following Receipts and Payments Account of Excellent Recreati...
Income and Expenditure Account for the year ended 31.3.1996

Income
Membership fees 60,000
Entrance fees 15,000
Rent of club house 25,000
Sale of old furniture 10,000
Interest on investments 5,000
Total Income 1,15,000

Expenditure
Salaries and wages 45,000
Electricity charges 8,000
Printing and stationery 3,000
Rent of club house 12,000
Repairs and maintenance 9,000
Purchase of new furniture 20,000
Interest on loan 2,000
Insurance premium 1,000
Total Expenditure 1,00,000

Surplus of Income over Expenditure 15,000

Balance Sheet as on 31.3.1996

Liabilities
Capital Fund 1,20,000
Add: Surplus of Income over Expenditure 15,000
Total 1,35,000

Assets
Furniture 30,000
Investments 5,000
Cash at Bank 1,00,000
Total 1,35,000

Explanation:

Receipts and Payments Account is a summary of all the transactions that have taken place during the year, both cash and non-cash. It gives an idea about the cash inflow and outflow during the year. However, it does not provide information about the income earned and expenditure incurred during the year. To know about the income and expenditure, we need to prepare an Income and Expenditure Account.

Income and Expenditure Account is prepared to find out the profit or loss of the organization during the year. It shows all the incomes earned and expenses incurred during the year. In this case, the total income earned during the year is Rs. 1,15,000, and the total expenditure incurred is Rs. 1,00,000. Hence, the surplus of income over expenditure is Rs. 15,000.

Balance Sheet is a statement of assets and liabilities of the organization as on a particular date, usually the end of the financial year. It gives an idea about the financial position of the organization. In this case, the total assets of the organization are Rs. 1,35,000, which includes furniture, investments, and cash at bank. The total liabilities of the organization are Rs. 1,20,000, which is the capital fund of the organization. The surplus of income over expenditure of Rs. 15,000 is added to the capital fund to arrive at the total liabilities.
Community Answer
From the following Receipts and Payments Account of Excellent Recreati...
I don't know
Explore Courses for CA Foundation exam

Similar CA Foundation Doubts

From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:?
Question Description
From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:?.
Solutions for From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? in English & in Hindi are available as part of our courses for CA Foundation. Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? defined & explained in the simplest way possible. Besides giving the explanation of From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:?, a detailed solution for From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? has been provided alongside types of From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? theory, EduRev gives you an ample number of questions to practice From the following Receipts and Payments Account of Excellent Recreation Club for the year ended 31.3.1996 and additional information given, prepare an Income and Expenditure Account for the year ended 31.3.1996 and Balance Sheet as on 31.3.1996:? tests, examples and also practice CA Foundation tests.
Explore Courses for CA Foundation exam

Top Courses for CA Foundation

Explore Courses
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev