From the following Receipts and Payments Account of Defence Club and from the information supplied prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as that date:

(i) The Club has 50 members each paying an annual subscrption of Rs 25,000 . Subscriptions Outstanding on 31st March 2018 were to the extent of Rs 3,00,000.
(ii) On 31st March 2019 Salaries Outstanding amounted to Rs 1,00,000 . salaries paid during 2018-19 included Rs. 3,00,000 for the year 2017-18.
(iii) On 1st April 2018 the club owned Building valued at Rs 1,00,00,000 furniture worth Rs. 10,00,000 and books Rs 10,00,000.
(iv) Legacy donation is for construction of Gymnasium.

Answer

N/a

Explanation

working Notes : Calculation of capital fund as at 1st April 2018:
`{:("2. Subscriptions due for 2018-19(Rs 25,000"xx"50)",,"Rs 12,50,000"),("Less: Subscrptions for 2018-19",,"Rs.10,00,000"),("Subscriptions outstanding for 2018-19",,"Rs. 2,50,000"):}`
3. Legacy donation is for specific purpose i.e., for cunstruction of Gymnasium Hence it is show in the Balance Sheet.