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Illustration 50 032 The following are the items of Receipts and Payments of the Bengal Club as summarized from the books of account maintained by
Illustration 50 032 The following are the items of Receipts and Payments of the Bengal Club as summarized from the books of account maintained by the Secretary: Receipts Amount Payments Amount Opening Balance 1.1.2013 4,200 Manager's Salary 1,000 Entrance fees 2012 1.000 Printing and Stationery 2,600 Do 2013 10,000| Advertising 1,800 Subscriptions 2012 600 Fire Insurance 1.200 Do 2013 15,000 Investments Purchased 20,000 Interest Received on Investments 3,000 Closing Balance 31.12.2013 7,600 Subscriptions 2014 400 34,200 34,200 It was ascertained from enquiry that the following represented a fair picture of the Income and Expenditure of the Club for the year 2013 for audit purpose: Expenditure Amount Amount Income Amount () Manager's Salary 1,500 Entrance Fees 10,500 Printing & Stationery 2,000 Subscription 15,600 Add: Accrued 400 2,400 Interest on Investments 4,000 Advertising (accrued Nil) 1,600 Audit Fees 500 Fire Insurance 1,000 Depreciation 4,940 Excess of Income over Expenditure 18,160 30,100 30,100 You are required to prepare the Balance Sheet of the Club as on 31.12.2012 and 31.12.2013, it being given that the values of the Fixed Assets as on 31.12.2012 were: Building 44,000. Cricket Equipment 25,000 and Furniture ? 4,000. The rates of depreciation are Building 5%, Cricket Equipments 10%, Furniture 6%. Your are entitled to make assumptions as may be justified
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