the excess of expenditure over income (deficit) on the credit side of Income and Expenditure Account. If surplus add it to the Capital Fund and if deficit deduct from Capital Fund in the Balance Sheet. Illustration: From the following details and notes attached relating to the Haryana Tennis Club, prepare the final accounts of the year ended 31st December 1998. On January 1998 the club's assets are: r47 Freehold Club house Rs. 20.000; Equipment Rs. 1,400; club subscription in arrear Rs. 160: The club owed Rs. 800 to a firm for Christmas 1997 dance catering Rs. 800 1.900 500 1,060 SUMMARY OF RECEIPT AND PAYMENTS FOR 1998 Receipts Rs. Payments To Cash in hand 1,520 By Catering-1997 dance To Subscriptions 3,280 By 1998-dances and socials To Locker Rent 200 By Band fees-1998 dances To Receipts from dances 2,780 By New lawn-mover and socials To Sale of used match 300 By Repairs to tennis nets tennis balls To Sale of old lawn-mover 160 By Match tennis balls By Match expenses By Repairs and decoration of club house By Balance c/d 8,240 380 620 340 1,300 1,340 8,240 Notes (1) The book value on 1 January 1998 of the old lawn mover sold during the year was Rs. 60. (11) The club has 40 members and the subscription is Rs.80 each per annum. The subscriptions received in 1998 included those in arrear for 1997 On 31 December, 1998 Rs. 220 was owed to Playfair Ltd. for tennis balls supplied. (iv) Equipment as at 31 December 1998 to be depreciated by 15% p. a. v) Tennis balls are regarded as revenue expenditure