Q.No.52 | Chapter 1 – Financial Statements of Not-for-Profit Organisations | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 52 Chapter 1 of +2-A

From the following information and Receipts and Payments Account of Delhi Medical Society, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date.

RECEIPTS AND PAYMENTS ACCOUNT (for the year ended 31st March 2019)

Receipts	Rs.	Payments	Rs.
To Cash in Hand (Opening)	2,600	By Rent	18,000
To Entrance Fee	3,200	By Wages	7,000
To Donation for Building	23,000	By Billiard Table	14,000
To Locker Rent	1,200	By Furniture	10,000
To Life Membership Fee	7,000	By Interest	2,000
To Profit from Entertainment	3,000	By Postage	1,000
To Subscription	40,000	By Salary	24,000
		By Cash in Hand (Closing)	4,000
	80,000		80,000

Prepare Income and Expenditure Account and Balance Sheet with the help of the following information:
Subscription outstanding on 31st March 2018 is ₹ 1,200 and ₹ 2,300 on 31st March 2019; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March 2018 and ₹ 1,500 is still unpaid. On 1st April 2018, the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March 2019. The club has a loan of ₹ 20,000 (@ 10% p.a.) which was taken, in the year ended 31st March 2018.

The solution of Question 52 Chapter 1 of +2-A: 

Books of Shankar Sports Club Income and Expenditure Account (for the year ended 31st March 2019)

Expenditure	Amount	Income			Amount
To Rent	18,000	By Subscriptions		40,000
To Wages	7,000	Add: O/s at the end		2,300
To Interest	2,000	Less: O/s in the Beginning		1,200	41,100
To Postage Consumed *1	1,100	By Entrance Fees			3,200
To Salary	24,000	By Locker Rent			1,200
To Depreciation on Furniture*2	2,500	By Profit from Entertainment			3,000
		By Deficit (Balancing Figure)			6,100
	54,600				54,600

* Means: - see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)

Liabilities	Amount	Assets		Amount
Loan @ 10% p.a.	20,000	Furniture		15,000
Outstanding Rent	1,500	Postage		300
		Subscriptions Outstanding		1,200
		Cash in Hand		2,600
		Capital Fund (Balancing Figure)		2,400
	9,90,000			9,90,000

 

Balance Sheet (for the year ended 31st March 2019)

Liabilities	Amount	Assets			Amount
Loan @10% p.a.	20,000	Capital Fund Deficit		2,400
Donation for Building	23,000	Add: - Deficit		6,100	8,500
Outstanding Rent	1,500	Furniture			22,500
Life Membership Fees	7,000	Billiard Table			14,000
		Postage			200
		Subscriptions Outstanding			2,300
		Cash in Hand			4,000
	51,500				51,500

* Means: - see the working note for calculation

Working Note: -

*1:- Statement Showing Postage used during the year

Particulars		Details	Amount
PostagePurchased during the year ended 31st March 2019			1,000
Add: - Opening Stock of Postage		300
Closing Creditors for Postage		-
Cash Purchase of Postage		-	300
Outstanding Advertisement Exp.			1,300
Less: - Closing Postage		200
Opening Creditors for Postage		-
Book Value of sale of Postage		-	200
Amount of Postage used - debited to the Income and Expenditure A/c			1,100

*2:- Calculate Depreciation on Furniture
Depreciation = Opening Balance of Furniture + Furniture Purchased During the year – Closing Balance of Furniture

Opening Balance of Furniture = 15,000
Closing Balance of Furniture = 22,500
Furniture Purchased During the year = 10,000

=  15,000 + 10,000 – 22,500

Depreciation    = 2,500/-

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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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

 

 

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