Question 41 Chapter 1 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 41 Chapter 1 of +2-Part-1

41. (I & E A/c/ B/S/ Depreciation on Sports Equipment)The treasurer of a Social Club has prepared the following Receipts and Payments Account for the year ended 31st March 2015:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2015

Receipts	Rs.	Payments	Rs.
Bank balance	6,400	Rent of rooms	2,800
Subscriptions	20,000	Wages of caretaker	4,000
Entrance fees	3,000	Purchase of sports equipment	12,80
Sale of refreshments	7,600	Dance expenses	3,800
Sale of dance tickets	4,500	Refreshment supplies	5,200
Interest on investments @7% for a full year	3,500	Secretary’s Expenses	800
		General Expenses	2,500
		Printing and stationary	1,400
		Bank balance	11,700
	45,000		45,000

You are given the following information:
1. At 31.3.2014, assets comprised:
Furniture Rs.9,600; Sports equipment Rs.5,200; Subscriptions in arrears Rs.1,500;
Liabilities were:
Accrued Rent Rs. 600 and subscriptions received in advance Rs.400.
2. At 31.3.2015, assets comprised:
Furniture Rs.8,600; Sports equipment Rs.15,200; Subscriptions in arrears Rs.1,300;
Liabilities were:
Accrued Rent Rs. 300 and subscriptions received in advance Rs.1800.
The members require:
(a) Income and Expenditure Account for the year ended 31st March, 2015
(b) the Balance Sheet as on that date.

The solution of Question 41 Chapter 1 of +2 Part-1: - 

Income and Expenditure account of Social Club For the year ending 31st March 2015

Expenditure		Amount	Income		Amount
To Wages of caretaker		4,000	By subscriptions:	20,000
To Dance expenses		3,800	Add: Outstanding	1300
To Refreshment supplies		5,200	Add: Received in advance	400
To Secretary’s Expenses		800	Less: Received for previous year	1500
To General Expenses		2,500	Less: Received in advance	1,800	18,400
To Printing and stationary		1,400	By sale of refreshments		7,600
To depreciation on furniture		1,000	By Sale of dance tickets		4,500
To rent of rooms:	2,800		By Interest on investments		3,500
Add: Outstanding (closing)	300
Less: Outstanding (opening)	600	2,500
To depreciation on sports equipment(WN1)		2,800
To Surplus c/d		10,000
		34,000			34,000

Balance Sheet As of 31st March 2015

Liabilities		Amount	Assets		Amount
Outstanding Rent		300	Cash at bank		11,700
Entrance fees		3,000	Furniture	9,600
Subscriptions received in advance		1,800	Less: Depreciation	1,000	8,600
Capital Fund:			Sports Equipment	5,200
Opening Balance	71,700		Add: Purchased	12,800
Add: Surplus	10,000	81,700	Less: Depreciation	2,800	15,200
			Subscription due		1,300
			Investments (100/7*3,500)		50,000
		86,800			86,800

Working Note:
1) Depreciation on sports equipment:

Opening balance	5,200
Add: Purchased during the year	12,800
	18,000
Less: Closing balance	15,200
Depreciation for the year	2,800

2. Opening Capital Fund:

Balance Sheet As on 1st April 2014

Liabilities		Amount	Assets		Amount
Outstanding Rent		600	Furniture		9,600
Subscriptions received in advance		400	Sports equipment		5,200
Capital Fund (Balancing Figure)		71,700	Subscription due		1,500
			Investments		50,000
			Cash at bank		6,400
		72,700			72,700

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Also, Check out the solved question of previous Chapters: -

Usha Publication - Accountancy PSEB (Class 12) - Volume I - Solution

• Chapter No. 1 - Accounting Not for Profit Organisations
• Chapter No. 2 - Partnership Accounts - I (Introduction)
• Chapter No. 3 - Partnership Accounts - II (Goodwill: Nature and Valuation)
• Chapter No. 4 - Partnership Accounts - III (Reconstitution of Partnership)
• Chapter No. 5 - Partnership Accounts - IV (Admission of A Partner)
• Chapter No. 6 - Partnership Accounts - V (Retirement and Death of A Partner)
• Chapter No. 7 - Partnership Accounts - VI (Dissolution of Partnership Firm)
• Chapter No. 8 - Company Accounts (Share Capital)
• Chapter No. 9 - Company Accounts (Issue of Debentures)
• Chapter No. 10 - Company Accounts (Redemption of Debentures)

Usha Publication - Accountancy PSEB (Class 12) - Volume II - Solution

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis
• Chapter No. 3 –  Tools of Financial Statement Analysis- Comparative and Common Size
• Chapter No. 4 - Ratio Analysis
• Chapter No. 5 - Cash Flow Statement

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