How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019
| Receipts | (Rs.) | Payments | (Rs.) |
| To Sale of Sports Materials | 26,000 | By Creditors for Sports Materials | 61,000 |
| (Book value ₹ 20,000) | By Cash purchase of Sports Materials | 10,000 |
Additional information :
As at 31st March, 2018 (Rs.) | As at 31st March, 2019 (Rs.) | |
| Sports Materials | 20,000 | 25,000 |
| Creditors for Sports Materials | 7,000 | 15,000 |
Income and Expenditure Account
for the year ended March 31, 2019
| Expenditure | Amount (Rs.) | Income | Amount (Rs.) | |
| Payment for Sports Material | 71,000 | Profit on Sale of Sports Material (26,000-20,000) | 6,000 | |
| Add: Opening Stock | 20,000 | |||
| Less: Closing Stock | (25,000) | |||
| Less: Creditors in the beginning | (7,000) | |||
| Add: Creditors at the end | 15,000 | |||
| Less: Book Value of Material Sold | (20,000) | 54,000 |
Balance Sheet
as on March 31, 2018
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Creditors for Sport Materials | 7,000 | Stock of Sport Materials | 20,000 |
Balance Sheet
as on March 31, 2019
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Creditors for Sport Materials | 15,000 | Stock of Sport Materials | 25,000 |