Question : Raj Kundra Cricket Club was inaugurated on 1st April, 2019. It had the following  Receipts and Payments during the year ended 31st March 2020.

Opening balance of cash Rs 20,000 (overdraft).

Receipts: Admission fees  Rs 20,000, Subscription Rs 1,20,000. Donation for Building Fund Rs 20,000. Sale of old newspaper Rs 1,000. Life membership fees Rs 50,000. Interest on Investment received Rs 2,500.

Payments: Salaries Rs 15,000, Rent paid Rs 25,000, Investment Rs 30,000. Stationery Rs 4,000. Books Rs 5,000.

Amount in Receipts and Payment Account for the year ended 31st March, 2020 __________.

Option 1: Rs 1,74,500

Option 2: Rs 1,34,500

Option 3: Rs 1,14,500

Option 4: Rs 1,01,500


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Answer (1)
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Correct Answer: Rs 1,14,500


Solution : RECEIPTS AND PAYMENTS ACCOUNT

Particulars Rs. Particulars Rs.
To Admission fees a/c
To Subscription A/c
To Donation for Building Fund A/c
By Sale of old newspaper A/c
By Life membership fees A/c
By Interest on investment received A/c
20,000
1,20,000
20,000
1,000
50,000
2,500
By Balance b/d
By Salaries A/c
By Rent paid A/c
By Investment A/c
By Stationery A/c
By Books A/c
By Balance c/d
20,000
15,000
25,000
30,000
4,000
5,000
1,14,500
2,13,500 2,13,500

Hence, the correct option is 3.

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