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7,300<o:p></o:p>

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Rent<o:p></o:p>

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10,470<o:p></o:p>

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Sunday Receipts<o:p></o:p>

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410<o:p></o:p>

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Wages<o:p></o:p>

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18,690<o:p></o:p>

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Interest on Fixed Deposit<o:p></o:p>

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270<o:p></o:p>

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Repairs and Renewals<o:p></o:p>

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5,400<o:p></o:p>

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Sundry Creditors<o:p></o:p>

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 5310<o:p></o:p>

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Fuel and Light<o:p></o:p>

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5,280<o:p></o:p>

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Grant from Institute (permanent)<o:p></o:p>

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42,000<o:p></o:p>

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Misc. Expenses<o:p></o:p>

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4,050<o:p></o:p>

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Income and Exp. A/c (1.4.16)<o:p></o:p>

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1,380<o:p></o:p>

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Cash in hand<o:p></o:p>

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560<o:p></o:p>

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Suspense A/c (See note)<o:p></o:p>

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60<o:p></o:p>

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Cash at bank<o:p></o:p>

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2,760<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Fixed Deposit<o:p></o:p>

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8,500<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Sundry Debtors<o:p></o:p>

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2,250<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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China glass, cutlery and linen<o:p></o:p>

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600<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Billiard Table<o:p></o:p>

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2,070<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Fixtures and Fittings<o:p></o:p>

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870<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Furniture<o:p></o:p>

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4,140<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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Club Premises<o:p></o:p>

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30,000<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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1,53,840<o:p></o:p>

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 <o:p></o:p>

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1,53,840<o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

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 <o:p></o:p>

</td> </tr></tbody></table>On March 31, 2016 stock of restaurant consisted of Rs 900 and Rs 60 respectively. Provide depreciations Rs 60 on fixtures and fittings, Rs 390 on billiard table and Rs 560 on furniture.

' href='chapter-1-accounting-for-not-for-profit-organisation-solutions-3.aspx'>As at March 31, 2017 the following balances have been extracted from the books of the Indian Chartered Accountants Recreation Club and you are asked to prepare (1) Trading Account for ascertaining gross profit derived from running restaurant and dining room and (2) Income and Expenditure Account for the year ended March 31, 2017 (3) and a Balance Sheet as at that date.

Debit Balances

Rs

Credit Balances

Rs

Stock-in-hand

1170

Receipts Dining Room

87,660

Purchases

24,660

Subscriptions

9,450

Dining Room

32,370

Billiard's Receipts

7,300

Rent

10,470

Sunday Receipts

410

Wages

18,690

Interest on Fixed Deposit

270

Repairs and Renewals

5,400

Sundry Creditors

 5310

Fuel and Light

5,280

Grant from Institute (permanent)

42,000

Misc. Expenses

4,050

Income and Exp. A/c (1.4.16)

1,380

Cash in hand

560

Suspense A/c (See note)

60

Cash at bank

2,760

 

 

Fixed Deposit

8,500

 

 

Sundry Debtors

2,250

 

 

China glass, cutlery and linen

600

 

 

Billiard Table

2,070

 

 

Fixtures and Fittings

870

 

 

Furniture

4,140

 

 

Club Premises

30,000

 

 

 

1,53,840

 

1,53,840

 

 

 

 
On March 31, 2016 stock of restaurant consisted of Rs 900 and Rs 60 respectively. Provide depreciations Rs 60 on fixtures and fittings, Rs 390 on billiard table and Rs 560 on furniture.

Answer -

Important Note:
1. Credit side of the Trial Balance of the question is short by Rs 60. Thus, in order to tally both sides of the Trial Balance, Suspense Account will be opened with the difference amount of Rs 60.
2. In the adjustment, Closing Stock should be Rs 960 instead of Rs 900.

Books of Indian Chartered Accountants Recreation Club

Restaurant Trading Account

Dr.

 

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Opening Stock

1,170

Receipts from Dining Room

87,660

Purchases

24,660

Closing Stock

960

Dining Room Exp.

32,370

 

 

Profit from Restaurant

30,420

 

 

 

88,620

 

88,620

 

 

 

 

 

 

 

 

 

 

Income and Expenditure Account 

as on March 31, 2017

Dr.

 

 

Cr.

Expenditure

Amount

 Rs

Income

Amount

Rs

Rent

10,470

Subscriptions

9,450

Wages

18,690

Sundry Receipts

410

Repairs an Renewals

5,400

Interest on Fixed Deposits

270

Fuel and Light

5,280

Profit from Restaurant

30,420

Misc. Expenses

4,050

Billiards Receipts

7,300

Depreciation on

 

 

 

 

Fixtures and Fittings

60

 

 

 

Billiards Table

390

 

 

 

Furniture

560

1,010

 

 

 

 

 

 

Surplus (Excess of Income over Expenditure)

2,950

 

 

 

 

 

 

 

47,850

 

47,850

 

 

 

 

 

Balance Sheet 

as on March 31, 2017

Liabilities

Amount

Rs

Assets

Amount

Rs

Sundry Creditors

5,310

Cash in Hand

560

Grant from Institute

42,000

Cash at Bank

2,760

Suspense

60

Fixed Deposit

8,500

Capital Fund (Income and Exp. A/c

as on Apr.01, 2016)

1,380

 

Sundry Debtors

2,250

Add: Surplus

2,950

4,330

China Glass, Cutlery and Linen

600

 

 

Billiards Table

2,070

 

 

 

Less: Depreciation

(390)

1,680

 

 

 

 

 

 

Fixture and Fittings

870

 

 

 

Less: Depreciation

(60)

810

 

 

 

 

 

 

Furniture

4,140

 

 

 

Less: Depreciation

(560)

3,580

 

 

 

 

 

 

Club Premises

30,000

 

 

Stock of Restaurant

960

 

51,700

 

51,700

 

 

 

 

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