IKC Sports Club is a non-profit organization which provides service and carries on the activities in the interest of society. The club does not confine it from earning the surplus and the earned amount is used to flourish the other activities for the betterment of the society. Equity to the IKC is provided by member contributions, grants by government and donations etc. The club administration keeps the record of all of its income and expense.
The following financial information pertaining to the year 2014 is available: IKC club collected an amount of Rs. 50,000 in the account of subscription which also included the subscriptions of Rs. 3,000 and Rs. 2,500 for the years 2012 and 2015 respectively. Subscription of Rs 3,500 is due in the year 2014 and Rs. 1,000 has been received in the year 2013.
The club paid Rs. 6,000 as salary including Rs. 500 for the year 2012. The salary outstanding for the year is Rs. 600. IKC received a donation of Rs. 5,000. The club also received Rs. 4,500 as entrance fee but 30% of this amount is treated as capital receipt and the remaining as entrance fee (revenue).
Some expenses occurred during the year including Rs. 1,200 as entertainment expenses and Rs. 800 as tournament expense. The club paid Rs. 2,500 as rent, Rs. 900 as stationery expenses and also purchased the equipment for sports for an amount of Rs. 6,100.
Required: By using the above data, prepare/calculate the followings for the year 2014:
1. Prepare the subscription account
2. Calculate the amount of entrance fee
3. Calculate the total amount of salary paid
4. Prepare “Income and Expenditure Account”
(Note: “Subscription account” and “income & expenditure account” must be prepared as per the format communicated in lectures and handouts).
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