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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
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Question 50 Chapter 1 of +2-A
50. From the following Receipts and Payments Account of Kapil Dev Club and from the given additional information, prepare Income and Expenditure Account for the year ending 31st December 2019 and the Balance Sheet as at that date:
RECEIPTS AND PAYMENTS ACCOUNT (for the year ended 31st March 2019)
| Receipts | Rs. | Payments | Rs. |
| To Balance b/d | 1,90,000 | By Salaries | 3,30,000 |
| To Subscriptions | 6,60,000 | By Sports Material | 4,00,000 |
| To Interest on Investment | 40,000 | By Balance c/d | 1,60,000 |
| @ 8% p.a. for full year | |||
| 8,90,000 | 8,90,000 |
Additional Information:
(i) The club had received ₹ 20,000 for subscription in 2017-18 for 2018-19.
(ii) Salaries had been paid only for 11 months.
(iii) The stock of sports materials on 31st March 2018 was ₹ 3,00,000 and on 31st March 2019 ₹ 6,50,000.
Income and Expenditure Account (for the year ended 31st March 2019)
| Expenditure |
Amount | Income |
Amount | |||
|---|---|---|---|---|---|---|
| To Salaries | 3,30,000 | By Subscriptions | 6,60,000 | 2,50,000 | ||
| Add: Outstanding Salary *1 | 30,000 | 65,000 | Add: Advance in the beginning | 20,000 | 54,000 | |
| To Sports Materials Consumed*2 | 50,000 | By Interest on Investments *3 | 40,000 | |||
| To Surplus(Balancing Figure) | 3,10,000 | |||||
| 3,63,500 | 3,63,500 | |||||
* Means: - see the working note for calculation
Balance Sheet (for the year ended 31st March 2019)
| Liabilities |
Amount | Assets |
Amount | ||
|---|---|---|---|---|---|
| Capital Fund *4 | 9,70,000 | Investments | 5,00,000 | ||
| Add: - Surplus | 3,10,000 | 12,80,000 | Stock of Sports Material | 6,50,000 | |
| Outstanding Salary | 30,000 | Cash | 1,60,000 | ||
| 13,10,000 | 13,10,000 | ||||
* Means: - see the working note for calculation
Working Note: -
*1:- Statement Showing Sports Material used during the year
| Particulars |
Details | Amount | |
|---|---|---|---|
| Sports Material Purchased during the year ended 31st March 2019 | 4,00,000 | ||
| Add: - Opening Stock of Sports Material | 3,00,000 | ||
| Closing Creditors for Sports Material | - | ||
| Cash Purchase of Sports Material | - | 3,00,000 | |
| Outstanding Advertisement Exp. | 7,00,000 | ||
| Less: - Closing Sports Material | 6,50,000 | ||
| Opening Creditors for Sports Material | - | ||
| Book Value of sale of Sports Material | - | 6,50,000 | |
| Amount of Sports Material used - debited to the Income and Expenditure A/c | 50,000 | ||
*2:- Calculation of Outstanding Salary
| O/s Salaries | = | Total salary paid | X | No. of Month for which not paid |
| Total No. of the month for which salary paid |
| O/s Salaries | = | 3,30,000 | X | 1 |
| 11 |
O/s Salaries = 5,000/-
*3:- Calculation of the amount of Investment:
| = amount of Interest | X | 100 |
| Rate of Interest |
| = 40,000 | X | 100 |
| 8 |
Total on Investment = 5,00,000/-
Balance Sheet (for the year ended 31st March 2018)
| Liabilities |
Amount | Assets |
Amount | |
|---|---|---|---|---|
| Advanced Subscription | 20,000 | Investments | 5,00,000 | |
| Stock of Sports Material | 3,00,000 | |||
| Cash | 1,90,000 | |||
| 9,90,000 | 9,90,000 | |||
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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