From the following Receipts and payments account of Omtex Sports Club, Dadar for the year ended 31st March, 2007 and other information, prepare Income and Expenditure account for the year ended on and a Balance Sheet as at that date.

Receipts	Amount	Payments	Amount
To Balance B/f	1040	By Salaries	2100
To Subscriptions for :		By Entertainment Expenses	45
2006	85	By Electric Charges	234
2007	3000	By General Expenses	350
2008	103	By Rates & Taxes	120
To Donations	2200	By Investments	900
To Entertainment Receipts	76	By Stationery & Printing	241
To Interest	981	By Expenses of 2006	600
To Entrance Fees	900	By Fixed Deposit	2900
		By Balance C/f	895
	8385		8385

The Gymkhana has 450 members paying an annual subscription of Rs. 15/- each.

Rs. 20/- is still in arrears towards subscription for the year 2006.

Carry forward Rs. 50/- or rates paid in advance.

Provide Rs. 2000/- for salaries outstanding.

The Gymkhana owns Land and Building standing in the books of Rs. 15,000/- and Furniture standing at Rs. 1,150, on which depreciation at 5% and 20% respectively is to be written off.

The Capital Fund as on 1^st April, 2006 was Rs. 16,695/-

50% of the Entrance Fees is to be capitalised. Donations are capitalised.

Solution: In the books of Omtex Sports Club, Dadar.

Income and Expenditure A/c for the year ended 31.03.07

Expenditure	Amount	Amount	Income	Amount	Amount
To Salaries	2100		By Subscription	3000
(+) Outstanding	2000	4100	(+) Outstanding	3750	6750
To Entertainment Expenses		45	By Donations	2200
To Electric Charges		234	(-) Capitalized	-2200	NIL
To General Expenses		350	By Entertainment Receipts		76
To Rates & Taxes	120		By Interest		981
(-) Prepaid	-50	70	By Entrance Fees	900
To Stationery & Printing		241	(-) Capitalized	-450	450
To Depreciation
Land & Building	750
Furniture	230	980
To Surplus [Income Over Expenditure]		2237
		8257			8257

Balance Sheet as on 31.03.07

Liability	Amount	Amount	Asset	Amount	Amount
Capital Fund	16695		Outstanding Subscription of current year		3750
(+) Entrance Fees	450		Outstanding Subscription of Last Year		20
	17145		Investments		900
(+) Donations	2200		Fixed Deposits		2900
	19345		Cash Balance		895
(+) Surplus	2237	21582	Prepaid Rates		50
Advance Subscription  of Next Year		103	Land & Building	15000
O/S Salaries		2000	(-) Depreciation	-750	14250
			Furniture	1150
			(-) Depreciation	-230	920
		23685			23685