The balance sheet is prepared in ‘the manner similar to what is followed in the case of trading concern. it can be prepared in Account Form or Report Form. If only the receipt and payment account is available, it is not possible to have a balance sheet, since complete information regarding the assets and liabilities will not be available from the books.
Following is the summary of cash transactions of GB Hockey Club for the year ended on 31 December 2017.
The club owned building $90,000 and furniture $8,400 as on 1st January 2017
Required: Prepare income and expenditure account and balance sheet as on 31 December 2017.