From the following Receipt and Payment account of Patan Sports Association, Patan and the adjustments. You are required to prepare Income and Expenditure Account for the year ended 31st March, 2004 and a Balance sheet as on that date. (12)

            Receipts and Payments Account for the year ended 31^st March 2004.

Receipts	Amount (Rs.)	Payments	Amount (Rs.)
To Balance b/d	4160	By Salaries	5500
To Subscription:		By Entertainment Expenses.	2580
2003 – 04	16000	By Lighting	1000
2004 – 05	412	By General Expenses	1536
To Donation	2000	By Taxes	500
To Receipts from Entertainment	3644	By Investments	12000
To Interest on Investment	324	By Printing and Stationery	944
To Entrance Fees	4500	By Expenses of 2002 – 03	2400
To Prize Fund	3000	By Fixed Deposit	4000
		By Bank Balance	3000
		By Balance C/d	580
	34040		34040

Adjustments:

(1)           There are 450 members paying an annual subscription of Rs. 40 each.

(2)           Salary outstanding on 31^st March, 2004 was Rs. 1,000.

(3)           Building stood in books Rs. 60,000 and furniture at Rs. 4,600 on 1^st April, 2003. Write off depreciation on these assets @ 2% and 10% respectively.

(4)           Interest on investment @ 5% has accrued for 3 months.

(5)           The capital fund was Rs. 66,360 on 1^st April, 2003.

(6)           60% of the entrance fee is to be capitalised.

Income & Expenditure A/c for the years ended 31-3-2004

Expenditure	Rs.	Rs.	Income	Rs.	Rs.
To Entertainment Expenses		2580	By Donation		2000
To Salaries	5500		By Receipt from Entertainment		3644
Add: Outstanding	1000	6500	By Interest on Investment	324
To Lighting		1000	Add: O/S Interest	150	474
To General Expenses		1536	By Entrance Fees	4500
To Taxes		500	Less: Capitalised	(2700)	1800
To Printing & Stationery		944	By Subscription		18000
To Depreciation
Building	1200
Furniture	460	1660
To Surplus (Income over Expenditure)		11198
		25918			25918

Balance Sheet as on 31-3-2004

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital Fund	66360		Building	60000
Add: Entrance Fees	2700		Less: Depreciation	(1200)	58800
	69060		Furniture	4600
Add: Surplus	11198	80258	Less: Depreciation	(460)	4140
Prize Fund		3000	Investments	12000
Outstanding Salary		1000	Add: Interest	150	12150
Subscription paid in advance		412	Fixed Deposit		4000
			Bank Balance		3000
			Cash		580
			Subscription receivable		2000
		84670			84670