following is the summary of cash transaction of the Royal Club for the year ended 31st March 2019

In the beginning of the year the club possessed Books of Rs 2,00,000 and Furniture of Rs 85,000 Subscription in arrears in the beginning of the year amouned to Rs 3,500 and at the end of the year Rs 4,500 and six months Rent was both in the beginning of the year and at the end of the year.
prepare income and Expenditure Account of the club for the ended 31st March 2019 and its Balance Sheet as at that date after writing off Rs 5,000 and Rs 11, 300 on Furniture and Books respectivley.

Answer

Surplus -Rs 56,500 Capital Fund on 1st April 2018 -Rs 3,12,000 ; Balance Sheet Total -Rs 4,01,900.

Explanation

1.Life Membership fee is capitalised.
2. Legacy is credited to Income and Expenditure Account it being not for specific purpose.