Question 42 Chapter 1 of +2 Part-1 - USHA Publication 12 Class Part - 1

Question 42 Chapter 1 of +2-Part-1

42. (I & E A/c/ B/S/ Subscriptions) Following Receipts and Payments Account of Super Time Club for the year ending 31st December 2015:

RECEIPTS AND PAYMENTS ACCOUNT

Receipts		Rs.	Payments	Rs.
To cash in hand		10,000	By bank overdraft(1.1.2015)	14,000
To subscriptions			By investments	13,600
2014	1,200		By furniture	5,960
2015	64,800		By salaries	20,400
2016	600	66,600	By printing and stationary	3,560
To entrance fees		2,680	By postage and telegrams	4,400
To proceeds for drama		8,160	By cost of drama	7,000
To interest from securities		2,000	By sundry expenses	5,600
To sale proceeds from old furniture(B.V.-Rs.320)		400	By balance c/d :
			Cash in hand	3,320
			Cash at bank	12,000
		89,840		89,840

You are required to compile the Income and Expenditure Account for the year ended 31st December 2015 and the balance sheet as on that date after taking into account the following information:
a) On 1st January, 2015, the club premises stood at Rs.1,00,000; Investments at Rs.24,000 and Furniture at Rs.12,000.
b) The club had 720 members each paying an annual subscription of Rs.100.
Liabilities were:
c) Salaries for December 2015 amounting to Rs.1,600 are outstanding.
d) Half of the entrance fees are to be capitalized.
e) Stock of stationary on 31st December 2014 was Rs.360 and on 31st December 2015 was Rs.400.

The solution of Question 42 Chapter 1 of +2 Part-1: - 

Income and Expenditure account of Super Time Club For the year ending 31st December 2015

Expenditure		Amount	Income		Amount
To salaries	20,400		By subscriptions:	64,800
Add: outstanding salaries	1,600	22,000	Add: outstanding Rs. (720*100)-64,800	7200	72,000
To printing and stationary	3,560		By Entrance fees	2,680
Add: opening stock	360		Less: Capitalized 1/2	1,340	1,340
Less: closing stock	400	3,520	By drama proceeds		8,160
To postage and telegrams		4,400	By interest on securities		2,000
To cost of drama		7,000	By profit on sale of furniture Rs.(400-320)		80
To sundry expenses		5,600
To excess of income over expenditure(Surplus)		41,060
		83,580			83,580

Balance Sheet As on 31st March 2015

Liabilities		Amount	Assets		Amount
Capital Fund:			Cash in hand		3,320
-Balance on 1-1-15	1,33,560		Cash at bank		12,000
Add: Surplus	41,060		Club premises		1,00,000
Entrance fees 1/2	1,340	1,75,960	Investments	24,000
Outstanding salary		1,600	Add: Purchased	13,600	37,600
Subscription received in advance on 2016		600	Furniture	12,000
			Add: Purchased	5,960
			Less: Sold	320	17,640
			Stock of stationary		400
			Outstanding Subscription		7,200
		1,78,160			1,78,160

Working Note:
2. Opening Capital Fund:

Balance Sheet As of 1 January 2015

Liabilities		Amount	Assets		Amount
Bank overdraft		14,000	Cash in hand		10,000
			Club premises		1,00,000
Capital Fund (Balancing Figure)		1,33,560	Investments		24,000
			Furniture		12,000
			Subscription due Stock of stationery		1200 360
		1,47,560			1,47,560

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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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