Question 54 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 54 Chapter 1 of +2-A

Question 54 Chapter 1 of +2-A

54. Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs.
To Cash in Hand 22,500 Salary 1,25,000
To Cash at Bank 50,000 By Stationery 17,000
To Subscriptions 8,17,500 By Electric Charges 95,500
To Donations 30,000 By Insurance 75,000
To Government Grant 1,50,000 By Equipment 3,00,000
To Sale of Newspapers 3,000 By Petty Expenses 5,000
To Proceeds of Charity Show 1,65,000 By Expenses on Charity Show      1,29,000
To Interest on Investments @ 10% for full-year 70,000 By Newspapers 10,000
To Sundries Income 4,000 By Lectures Fee 1,65,000
    By Honorarium to the secretary 1,20,000
    By Cash in Hand 20,500
    By Cash at Bank 2,50,000
       
  13,12,000   13,12,000

Additional Information:

Particulars 1st April 2018 31st March 2019
  (₹) (₹)
Outstanding Salaries       12,000      18,000
Insurance Prepaid         7,000       3,000
Subscription Outstanding       37,500     25,000
Subscription received in advance       17,500     10,000
Electricity Charges outstanding         …      12,500
Stock of Stationery       22,500       7,000
Equipments    2,56,000  5,02,000
Building   12,00,000 11,40,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019,and Balance Sheet as on that date.

The solution of Question 54 Chapter 1 of +2-A

Books of Rama Krishna Mission Charitable HospitalIncome and Expenditure Account
(for the year ended 31st March 2019)
Expenditure
Amount Income
Amount
To Stationery   32,500 By Subscriptions *1 8,17,500  
To Electricity Charges 95,500   Add: O/s at the end 25,000  
Add: O/s at the end 12,500 1,08,000  Adv. in the Beginning 17,500  
To Salary 1,25,000   Less: O/s in the Beginning 37,500  
Add: O/s at the end 18,000   Adv. at the end 10,000 8,12,500
Less: O/s Beginning 12,000 1,31,000 By Donations   30,000
To Insurance 75,000   By Government Grant   1,50,000
Add: O/s at the end 7,000   By Sale of Old Newspapers   3,000
Less: O/s Beginning 3,000 79,000 By Income from Charity Show    
To Petty Expenses   5,000 Proceeds of Charity Show 1,65,000  
To Newspaper   10,000 Less: O/s in the Beginning 1,29,000 36,000
To Lectures Fees   1,65,000      
To Honorarium to Secretary   1,20,000 By Interest on Investments   70,000
To Depreciation on Equipment *2   54,000 By Sundries Income   4,000
To Depreciation on Building*3   60,000      
By Deficit (Balancing Figure)   3,41,000      
    7,99,500     7,99,500

* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
Outstanding Salary 12,000 Prepaid Insurance 7,000
Subscription Received in Advance 17,500 Subscription Outstanding 37,500
    Stock of Stationery 22,500
    Equipment 2,56,000
    Building 12,00,000
Capital Fund(Balancing Figure) 22,66,000 Cash
22,500
    Bank 50,000
       
    10% Investments *4 7,00,000
       
  22,95,500     22,95,500

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Capital Fund 22,66,000 1,000 Prepaid Insurance   3,000
Add: Surplus 3,41,000 26,07,000 Subscription Outstanding   25,000
Outstanding Salary   18,000 Stock of Stationery   7,000
Subscription Received in Advance   10,000 Equipment 2,56,000  
Electricity Charges Outstanding   12,500 Add: Purchases 3,00,000 3,16,000
      Less: Depreciation *2 54,000 5,02,000
      Building 12,00,000  
      Less: Depreciation *3 60,000 11,40,000
      Cash   20,500
      Bank   2,50,000
      10% Investments *1   7,00,000
           
    26,47,500       26,47,500

* Means: – see the working note for calculation

Working Note: –

*1:- Calculation of Amount of Subscriptions

Subscription received During the year 8,17,500
Add: – Subscription outstanding at the end of the year 25,000
Subscription received in advance in the beginning of the year 17,500
  8,60,000
Less: – Subscription outstanding in the beginning of the year 37,500
Subscription received in advance at the end of the year 10,000
The amount for subscription credited to the Income and Expenditure A/c 8,12,500

*2:- Calculate Depreciation on Equipment
Depreciation = Opening Balance of Equipment + Equipment Purchased During the year – Closing Balance of Equipment
Opening Balance of Equipment = 2,56,000
Closing Balance of Equipment = 5,02,000
Equipment Purchased During the year = 3,00,000
= 2,56,000 + 3,00,000 – 5,02,000
Depreciation = 54,000


*3:- Calculate Depreciation on Building
Depreciation = Opening Balance of Building + Building Purchased During the year – Closing Balance of Building
Opening Balance of Building = 12,00,000
Closing Balance of Building = 11,40,000
Building Purchased During the year = 0
= 12,00,000 + 0 – 11,40,000
Depreciation = 60,000


*4:- Calculation of the amount of Investment X

 = amount of Interest  X 100
Rate of Interest

 

70,000 X 100
10

Total on Investment = 7,00,000/-

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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)

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

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

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2 Book 1 min - Question 54 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 53 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 53 Chapter 1 of +2-A

Question 53 Chapter 1 of +2-A

53. From the following particulars relating to the Ramakrishna Mission Charitable Hospital, 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 on 1st April 2018 71,300 By Medicines ​3,05,900
To Subscriptions 4,79,960 By Doctor’s Honorarium 90,000
To Donations 1,45,000 By Salaries 2,75,000
To Interest on Investment @7% for a full year 70,000 By Petty Expenses 4,610
To Proceeds from Charity Show 1,04,500 By Equipment 1,50,000
    By Expenses on Charity Show 7,500
    By Cash in Hand on 31st March 2018 37,750
  8,70,760   8,70,760

 

Additional Information:  As at 1st April 2018 As at 31st March 2019
       (₹) (₹)
Subscriptions Due       2,400      2,800
Subscriptions Received in Advance          640      1,000
Stock of Medicines      88,100    97,400
Estimated value of Equipment    2,12,000  3,16,000
Building (cost less depreciation)    4,00,000  3,80,000

 

The solution of Question 53 Chapter 1 of +2-A

Books of Rama Krishna Mission Charitable HospitalIncome and Expenditure Account
(for the year ended 31st March 2019)
Expenditure
Amount Income
Amount
To Medicine 3,05,900   By Subscriptions *1 4,79,960  
Add: Opening Stock 88,100   Add: O/s at the end 2,800  
Less: Closing Stock 97, 400 2,96,600  Adv. in the Beginning 640  
To Doctor’s Honorarium   90,000 Less: O/s in the Beginning 2,400  
To Salary   2,75,000 Adv. at the end 1,000 4,80,000
To Petty Expenses   4,610 By Donations   1,45,000
To Expenses on Charity Show   7,500 By Interest on Investments   70,000
To Depreciation on Equipment *2   46,000 By Proceeds from Charity Show   1,04,500
To Depreciation on Building*3   20,000      
           
By Deficit (Balancing Figure)   59,790      
    7,99,500     7,99,500

* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
Advanced Subscription 640 Subscription Due 2,400
Outstanding Rent 1,500 Stock of Medicines 88,100
    Equipment 2,12,000
    Building 4,00,000
    Cash in Hand 4,00,000
Capital Fund(Balancing Figure) 17,73,160 Investments *3 10,00,000
  17,73,800     17,73,800

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Advanced Subscription   1,000 Subscription Due   2,800
Capital Fund 17,73,160   Stock of Medicines   97,400
Add: Surplus 59,790 18,32,950 Equipment 2,12,000  
      Add: Purchases 1,50,000  
      Less: Depreciation *2 46,000 3,16,000
      Building 4,00,000 2,300
      Less: Depreciation *3 20,000 4,000
      7% Investments *4   10,00,000
      Cash in Hand   37,750
    18,33,950       18,33,950

* Means: – see the working note for calculation

Working Note: –

*1:- Calculation of Amount of Subscriptions

Subscription received During the year 47,996
Add: – Subscription outstanding at the end of the year 280
Subscription received in advance in the beginning of the year 64
  48,340
Less: – Subscription outstanding in the beginning of the year 240
Subscription received in advance at the end of the year 100
The amount for subscription credited to the Income and Expenditure A/c 48,000

*2:- Calculate Depreciation on Equipment
Depreciation = Opening Balance of Equipment + Equipment Purchased During the year – Closing Balance of Equipment
Opening Balance of Equipment = 2,12,000
Closing Balance of Equipment = 3,16,000
Equipment Purchased During the year = 1,50,000
= 2,12,000 + 1,50,000 – 3,16,000
Depreciation = 46,000

*3:- Calculate Depreciation on Building
Depreciation = Opening Balance of Building + Building Purchased During the year – Closing Balance of Building
Opening Balance of Building = 4,00,000
Closing Balance of Building = 3,80,000
Building Purchased During the year = 0
= 4,00,000 + 0 – 3,80,000
Depreciation = 20,000

*4:- Calculation of the amount of Investment X

 = amount of Interest  X 100
Rate of Interest

 

70,000 X 100
7

Total on Investment = 10,00,000/-

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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)

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

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

 

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2 Book 1 min - Question 53 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 52 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 52 Chapter 1 of +2-A

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)

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

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

 

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 52 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 51 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 51 Chapter 1 of +2-A-min

Question 51 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 balance b/d    31,900 ​By Rent 16,800
To Entrance Fees      5,500 By Wages 24,500
To Subscriptions 1,80,000 By Lighting Charges 7,200
To Donations    16,500 By Books 24,800
To Life Membership Fees    25,000 By Medicines (Polio Eradication Project) 1,00,000
To Government Grant (Polio Eradication Project) 2,00,000 By Salaries to Doctors (Polio Eradication Project) 80,000
To Proceeds of Seminar    23,200 By Office Expenses 45,000
To Interest on Deposits      2,400 By 8% Fixed Deposits  1,20,000
       (On 1st October 2018)  
    By Seminar Expenses 20,200
    By Cash in Hand 26,000
    By Bank A/c (Polio Eradication Project) 20,000
  4,84,500   4,84,500

Other information:

On 31st March 2018, the Club possessed books of ​₹ 2,00,000 and Furniture of ₹ 85,000. Provide depreciation on these assets @ 10% including the purchases during the year.Subscriptions in arrears at the beginning of the year amounted to ₹ 3,500 and at the end of the year, ₹ 5,500 were outstanding.​The Club paid three months’ rent in advance both in the beginning and at the end of the year.

The solution of Question 51 Chapter 1 of +2-A

Books of Delhi Medical Society
Income and Expenditure Account
(for the year ended 31st March 2019)

Expenditure
Amount Income
Amount
To Rent 16,800   By Subscriptions 1,80,000  
Add: – Adv. Rent in the beginning*2 4,200   Add: O/s at the end 5,500  
Add: – Adv. at the end 4,200 16,800 Less: O/s in the Beginning 3,500 1,82,000
To Wages   24,500 By Entrance Fees   5,500
To Lighting Charges   7,200 By Donations   16,500
To Office Expenses   45,000 By Interest on Deposits 2,400  
To Depreciation on Furniture*3   8,500 Add: Accrued Interest*1 2,400 4,800
To Depreciation on Books *4   22,480 By Profit from Seminar    
      Proceeds 23,200  
      Less: Expenses 20,200 3,000
To Surplus(Balancing Figure)   87,320      
    2,11,800   2,11,800

* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Advanced Subscription   20,000 Advance Rent 4,200
      Subscription-in-Arrears 3,500
      Books 2,00,000
    Cash in Hand 31,900
    Furniture 85,000
Capital Fund (Balancing Figure) 9,70,000

   
    9,90,000     9,90,000

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Capital Fund 3,24,600   Advance Rent   4,200
Add: – Surplus 87,320 4,11,920 Subscription-in-Arrears   5,500
Life Membership   25,000 Books 2,00,000  
Government Grant 2,00,000   Add: – Purchased 24,800  
Less: – Medicines 1,00,000     2,24,800  
– Salaries 80,000 20,000 Less: 10% Depreciation 22,480 2,02,320
           
      Furniture 85,000  
      Less: 10% Depreciation 8,500 76,500
      8% Fixed Deposit   1,20,000
      Accrued Interest   2,400
      Cash in Hand   26,000
      Cash at Bank   20,000
           
           
           
    4,56,920       4,56,920

* Means: – see the working note for calculation

Working Note: –

*1:- Calculation Accrued amount of Interest on Investment

Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 1,20,000
Rate of Interest = 8%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(from the date of purchase to the end of the financial year)

Total Interest on Investment = 1,20,000 X 8/100 X 6/12

Total Amount of Interest on Investment For the F/Y 19-20 4,800
Less: – Total Amount Interest on Investment received For the F/Y 19-20 2,400
Accrued amount of Interest on Investment For the F/Y 19-20 2,400

*2: – Calculation of rent in advance both in the beginning and at the end of the year
The Club paid three months’ rent in advance both in the beginning and at the end of the year.

If Rent includes the three month’s rent in advance in both so the amount of advance rent will be the same for both in the beginning and at the end of the year: –

= 16,800 X 3/12

Advance Rent  = 4,200/-

*3:- Calculate Depreciation on Furniture
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 85,000
Rate of Depreciation = 10%
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)

=  85,000 X 10/100 X 12/12

Depreciation    = 8,500/-

*4:Calculate Depreciation on Books

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 2,00,000
Rate of Depreciation = 10% (same rate on purchased during the year also)
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)

Books purchased during the year= 24,800
Total Value of Assets at the end of year = 2,00,000 + 24,800
= 2,24,800/-
= 2,24,800 X 10/100 X 12/12
Depreciation = 22,480/-

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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)

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

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

 

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2 Book 1 min - Question 51 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 50 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 50 Chapter 1 of +2-A

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.

The solution of Question 50 Chapter 1 of +2-A

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
      Cash 1,60,000
Outstanding Salary   30,000


   
    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
Capital Fund (Balancing Figure)  

9,70,000

   
    9,90,000     9,90,000


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Comment if you have any questions.

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)

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

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

 

 

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2 Book 1 min - Question 50 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 49 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 49 Chapter 1 of +2-A

Question 49 Chapter 1 of +2-A

49. Given Below is the Receipts and Payments Account of a Mayur Club for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts    Rs. Payments Rs.
To Balance b/d   1,02,500 By Salaries 60,000
To Subscriptions:     By Expenses 7,500
2017-18 4,000   By Drama Expenses 45,000
2018-19 2,05,000   By Newspapers 15,000
2019-20 6,000 2,15,000 By Municipal Taxes 4,000
To Donations   54,000 By Charity 35,000
To Proceeds of Drama Tickets   95,000 By Investments 2,00,000
To Sale of Waste Paper   4,500 By Electricity Charges 14,500
      By Balance c/d 90,000
         
    4,71,000   4,71,000

Prepare the club’s Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date after taking the following information into account:
(i) There are 500 members, each paying an annual subscription of ₹ 500, ₹​ 5,000 are still in arrears for the year ended 31st March 2018.
(ii) Municipal Taxes amounted to ₹​ 4,000 per year is paid up to 30th June and ₹ ​5,000 are outstanding of salaries.
(iii) The building stands in the books at ₹​ 5,00,000.
(iv) 6% interest has accrued on investments for five months.

The solution of Question 49 Chapter 1 of +2-A

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Salaries 60,000   By Subscriptions *1   2,50,000
Add: Outstanding Salary 5,000 65,000 By Donations   54,000
To Expenses   7,500 By Profit from Drama    
To Newspapers   15,000 Total Proceeds from Drama Tickets 95,000  
To Municipal Taxes 4,000 69,000 Less: Drama Expenses 45,000 50,000
Add: Prepaid in 2017-18 *3 1,000   By Sale of Waste Paper   4,500
Add: Prepaid in 2019-20 1,000 4,000 By Accrued Interest on Investments *2   5,000
To Charity   35,000      
To Electricity Charges   14,500      
           
           
To Surplus(Balancing Figure)   2,22,500      
    3,63,500   3,63,500

* Means: – see the working note for calculation

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
      Subscriptions Outstanding 9,000
      Municipal Taxes Prepaid 1,000
      Building 5,00,000
Capital Fund (Balancing Figure)   6,12,500


 
Cash and Bank 1,02,500
    6,12,500     6,12,500

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets  Amount
Capital Fund   6,12,500   Building     5,00,000
Add: – Surplus   2,22,500 8,35,000 Investments     2,00,000
Advanced Subscription     6,000 Subscriptions Outstanding      
Outstanding Salary     5,000 2018-19*   45,000 11,000
Outstanding Advertisement Exp.     10,000 2017-18   5,000 99,000
        Accrued Interest on Investments     5,000
        Prepaid Municipal Taxes     1,000
        Cash and Bank     90,000
  8,46,000     8,46,000

Working Note: –
*1:- Calculation of Subscription outstanding at the end of the year

Total Subscription Due for the year-end 31st March 2019
(Total Member X Amount of Subscription) (this amount will be transferred to I&E a/c)
500 Members X Rs 500 each
2,50,000
Less: Subscription received during the year for the year 2018-19 2,05,000
Subscription outstanding at the end of the year 45,000

*2:- Calculation of Total Interest on Investment
Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 2,00,000
Rate of Interest = 6%
Period = 5 months(given)
= 2,00,000 X 6/100 X 5/12
Total Interest on Investment = 5,000/-
*3: – Calculation of Prepaid Municipal Taxes

(ii) Municipal Taxes amounted to ₹​ 4,000 per year is paid up to 30th June.

But our Financial Year ended on 31st March 2019. that’s why from 1st April 2019 to 30th June 2019 for 3 months the premium was paid extra.
And in the receipts and payment account, there is a total amount of Municipal Taxes are given Rs 4000. It means a total payment made of Ra 4000 only during the year and from the date 1st, April 19 to 30th June 2019 was already paid in the previous year.
So, The below amount will be treated as closing prepaid for the next year and also for this year as opening prepaid.

= 4,000 X 3/12
Prepaid Insurance Premium = 1,000/-

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

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

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

 

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2 Book 1 min - Question 49 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 48 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 48 Chapter 1 of +2-A

Question 48 Chapter 1 of +2-A

48. Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs.
To Balance b/d:    By Charity 1,15,000
    Cash in Hand   1,15,000 By Rent and Taxes 32,000
    Cash at Bank  1,26,000 By Salary 60,000
To Donations       90,000 By Printing 6,000
To Subscriptions    4,28,000 By Postage 3,000
To Legacies Donations     1,80,000 By Advertisements 45,000
To Interest on Investment        45,000 By Insurance 20,000
To Sale of old Newspaper         2,000 By Furniture 2,16,000
      By Investment 2,30,000
       By Balance c/d:  
       Cash in Hand 99,000
       Cash at Bank 1,60,000
  9,86,000   9,86,000

Prepare Income and Expenditure Account for the year ended 31st March 2019, and Balance Sheet as on that date after the following adjustments:
(i) Insurance premium was paid for insurance taken w.e.f. 1st July 2018.
(ii) Interest on investment ₹ 11,000 accrued was not received.
(iii) Rent ₹ 6,000; Salary ₹ 9,000 and advertisement expenses ₹ 10,000 outstanding as on 31st March 2019.
(iv) Legacy Donation is towards the construction of Library Block.

The solution of Question 48 Chapter 1 of +2-A

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Charity   1,15,000 By Subscriptions   4,28,000
To Rent and Taxes 32,000   By Donations   90,000
Less: Prepaid Expenses 6,000 38,000 By Interest on Investments 45,000  
To Salary 60,000   Add: Accrued Interest 11,000 56,000
Add: Outstanding Salary 9,000 69,000 By Sale of Old Newspapers   2,000
To Advertisement 45,000        
Add: Outstanding Adv. 10,000 55,000      
To Insurance 20,000        
Less: Prepaid Insurance *1 5,000 15,000      
To Printing   6,000      
To Postage   3,000      
To Surplus(Balancing Figure)   2,75,000      
    5,76,000   5,76,000

* Means: – see the working note for calculation

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
      Cash in Hand 1,15,000
      Cash and Bank 1,26,000
         
Capital Fund (Balancing Figure)   2,41,000

 
   
    2,41,000     2,41,000

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets  Amount
Capital Fund   2,41,000   Furniture   2,16,000
Add: – Surplus   2,75,000   Investments   2,30,000
Add: – Legacy   1,80,000 6,96,000      
Outstanding Rent     6,000 Prepaid Insurance   5,000
Outstanding Salary     9,000 Accrued Interest on Investments   11,000
Outstanding Advertisement Exp.     10,000 Cash in Hand   99,000
        Cash at Bank   1,60,000
  5,30,400   5,30,400

Working Note: –
*1: – Calculation of Prepaid Insurance

Insurance premium was paid for insurance taken w.e.f. 1st July 2018 So, it will be valid for the minimum of 1 year (up to 30th June 2019) But our Financial Year ended on 31st March 2019. that’s why from 1st April 2019 to 30th June 2019 for 3 months the premium was paid extra.

This is Related to the next year not the expense for this year so we have to subtract it from the total amount.

= 20,000 X 3/12
Prepaid Insurance Premium = 5,000/-

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

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

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

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2 Book 1 min - Question 48 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 47 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 47 Chapter 1 of +2-A

Question 47 Chapter 1 of +2-A

47. From the following Receipts and Payments Account of Mumbai Theatre Club, 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 Balance b/d:   By Salary 20,000
Cash and Bank  1,40,000 By Repair Expenses 5,000
To Donations 50,000 By Furniture 60,000
To Subscriptions 1,20,000 By Miscellaneous Expenses 5,000
To Entrance Fees 10,000 By Investments 60,000
To Interest on Investments 1,000 By Insurance Premium 2,000
To Interest Received from Bank 4,000 By Billiard Table 80,000
To Sale of Old Newspapers 1,500 By Paper, Ink, etc. 1,500
To Sale of Drama Tickets 10,500 By Drama Expenses  5,000
    By Balance c/d:  
       Cash and Bank 98,500
  3,37,000   3,37,000

Additional Information:
(i) Subscriptions in arrear for the year ended 31st March 2019 ₹ 9,000 and subscriptions in advance for the year ending 31st March 2020 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accrued on investment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

The solution of Question 47 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Salary   20,000 By Subscriptions *1 1,20,000  
To Repair Expenses   5,000 Add: Outstanding for 2018-19 9,000  
To Miscellaneous Expenses 5,000   Less: Adv. Sub. for 2019-20 3,500 1,25,500
Less: Prepaid Expenses 900 4,100 By Donations   50,000
To Insurance Premium 2,000   By Entrance Fees   10,000
Add: Outstanding Premium 400 2,400 By Interest on Investments 1,000  
To Paper, Ink, etc.   1,500 Add: Accrued Interest *2 2,000 3,000
To Drama Expenses.   5,000 By Interest received from Bank   4,000
      By Sale of Old Newspapers   1,500
      By Sale of Drama Tickets   10,500
To Surplus(Balancing Figure)   1,66,500      
    2,04,500   2,04,500

* Means: – see the working note for calculation

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
Creditors for Billiard Table   80,000 Billiard Table 3,00,000
      Cash and Bank 1,40,000
         
Capital Fund (Balancing Figure)   3,60,000
 
   
    4,40,000     4,40,000

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets  Amount
Capital Fund   3,60,000   Furniture   60,000
Add: – Surplus   1,66,500 5,26,500 Investments   60,000
Outstanding Insurance Premium     400 Billiard Table   3,00,000
Advance Subscriptions     3,500 Prepaid Miscellaneous Expenses   900
        Accrued Interest on Investments   2,000
        Outstanding Subscriptions   9,000
        Cash and Bank   98,500
             
  5,30,400   5,30,400

Working Note: –
*1: – Calculation of Amount of Subscriptions

Subscription received During the year 1,20,000
Add: – Subscription outstanding at the end of the year 9,000
Subscription received in advance at the beginning of the year
  1,29,000
Less: – Subscription outstanding at the beginning of the year
Subscription received in advance at the end of the year 3,500
The amount for subscription credited to the Income and Expenditure A/c 1,25,500

*2: – Calculation of Total Interest on Investment
Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 60,000
Rate of Interest = 8%
Period = 5 months(given in additional information)
= 60,000 X 8/100 X 5/12
Total Accrued Interest on Investment = 2,000/-

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

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

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

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2 Book 1 min - Question 47 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 46 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 46 Chapter 1 of +2-A

Question 46 Chapter 1 of +2-A

46. From the following Receipts and Payments Account and additional information relating to the star Cricket Club, 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 Balance B/d     By Upkeep of Fields   20,000
Cash in Hand 1st April 2018` 10,000   By Tournament Expenses   7,000
Cash at Bank as per pass Book 20,000 30,000 By Rates and Insurance   2,000
To Members’ Subscriptions   50,000 By Telephone   500
To Admission Fee   3,000 By Stationery   1,000
To Sale of Old Bats, etc.   500 By General Charges   500
To Hire of Ground   3,000 By Secretary’s Honorarium   2,000
To Subscriptions for Tournament   10,000 By Bats, Balls, Etc.    7,000
To Donations   75,000 By Balance C/d    
To Legacy Donations   25,000 Cash in Hand 31st March 2019 1,00,000  
      Cash at Bank as per Pass Book 56,500 1,56,500
    1,96,500     1,96,500

Assets on 1st April 2018:

The stock of Bats and Balls  15,000
Stationery 2,000
Subscriptions Due 5,000

Subscription due on 31st March 2019 amounted to Rs 7,500. Write off 50% of Bats, Balls(not considering sale) and 25% of stationery.

The solution of Question 46 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Upkeep of Fields   20,000 By Members’ Subscriptions *1 50,000  
To Rates and Insurance   2,000 Add: Outstanding for 2018-19 7,500  
To Telephone   500 Less: Outstanding for 2017-18 5,000 52,500
To General Charges   500 By Admission Fee   3,000
To Secretary’s Honorarium   2,000 By Sale of Old Bats, etc.   500
To Depreciation on Bats, Balls, etc. *2   11,000 By Hire of Ground   3,000
To Stationery Consumed *3   750 By Donations   1,00,000
To Surplus(Balancing Figure)   1,22,250      
    1,59,000   1,59,000

* Means: – see the working note for calculation

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
      The stock of Bats and Balls 15,000
      Printing and Stationery 2,000
      Subscriptions Outstanding 5,000
      Cash at Bank 30,000
         
         
         
Capital Fund (Balancing Figure)   52,000    
    52,000     52,000

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets  Amount
Capital Fund   52,000   Subscriptions   7,500
Add: – Surplus   1,22,250 1,74,250 Outstanding Bats and Balls 15,000  
Subscription for Tournament   10,000   Add: Purchases 7,000  
Less: Tournament Expenses   (7,000) 3,000   22,000  
        Less: 50% Written-off 11,000 11,000
        Printing and Stationery 2,000  
        Add: Purchase 1,000  
          3,000  
        Less: 25% Written-off 750  
        Printing and Stationery   1,56,500
             
  1,77,250   52,000

Working Note: –
*1: – Calculation of Amount of Subscriptions

Subscription received During the year 50,000
Add: – Subscription outstanding at the end of the year 7,500
Subscription received in advance at the beginning of the year
  57,500
Less: – Subscription outstanding at the beginning of the year 5,000
Subscription received in advance at the end of the year
The amount for subscription credited to the Income and Expenditure A/c 52,500

*2:- Calculate Depreciation on Bats and Balls
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 15,000 + 7 000
Rate of Depreciation = 50%
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 22,000 X 50/100 X 12/12
Depreciation = 11,000/-

*3:- Calculation of the amount of consumption of Stationery Items  
Opening Balance of Stationery Items 2,000
Add: – Purchase of Stationery Items during the year 1,000
  3,000

Consumption of Stationery Items @ 25%
Consumption = Value of Stationery Items X Rate of Write off
= 3000 X 25%
= 750

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T.S. G

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

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

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

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2 Book 1 min - Question 46 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 45 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 45 Chapter 1 of +2-A

Question 45 Chapter 1 of +2-A

45. Glaxo Club’s Balance Sheet as at 1st April 2018 was as under:

Liabilities  Rs. Assets Rs. 
Capital Fund 2,00,000 Sports Equipment 50,000
Tournament Fund 60,000 Grounds 1,20,000
Subscriptions in Advance 6,000 Billiards Tables 60,000
Salaries Unpaid 11,000 Subscriptions Outstanding 8,000
    Cash and Bank Balances 39,000
  6,51,500   6,51,500

 

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs. 
To Opening Balance 39,000 By Wages and Salaries 60,000
To Subscriptions 1,81,000 By Upkeep of Grounds 10,000
To Sale of Old Materials 1,500 By Stationery 15,000
To Sale of Sports Equipment 6,000 By Audit fee 2,000
     (Book Value Rs 10,000)   By Expenses on Tournament 65,000
To Entrance fees 2,000 By Sports Equipment 20,000
To Life Membership Fees 50,000 By 5% Investments 40,000
To Donations for Tournament 20,000       (On 1st October 2018)  
    By Cash and Bank Balances 87,500
  6,51,500   6,51,500

Additional Information:

Subscriptions still to be received are Rs 5,500 but subscriptions already received include Rs 4,000 for next year. Salaries still unpaid are Rs 6,000. Sports Equipment is now valued at Rs 45,000. Prepare Income and Expenditure Account and the Balance sheet, after charging 10% depreciation on Billiards Tables.

The solution of Question 45 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Wages and Salaries   60,000   By Subscription 2018-19* 1,81,000  
Add: – Closing Unpaid Salaries   6,000   Add O/s Sub. at the end 5,500  
Less: – Opening Unpaid Salaries   11,000 55,000   Adv. Sub. In the Beginning 6,000  
To Upkeep of Grounds     10,000 Less: O/s. Sub. In the Beginning 8,000  
To Stationery     15,000 Adv. Sub. at the end 4,000 1,80,500
To Audit fee     2,000 By Sale of Old Materials   1,500
To Loss on sale of Sports Equipment*     4,000 By Entrance Fees   2,000
To Consumption of Sport Equipment*     15,000 By Accrued Interest on investment*   1,000
To Depreciation on Billiards Tables*     6,000      
To Surplus(Balancing Figure)     78,000      
      1,85,000       1,85,000

 

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
  Amount
Capital Fund   2,00,000   Cash in Hand   87,500
Add: – Surplus   78,000 2,78,000 Cash at Bank   45,000
Outstanding Salaries     6,000 Grounds   1,20,000
Advance Subscription for 19-20     4,000 Billiards Tables 60,000  
Tournament Fund*     15,000 Less: Depreciation 6,000 54,000
Life Membership Fees     50,000 Outstanding Subscription   5,500
        5% of Investments   40,000
        Accrued Interest   1,000
      3,53,000       3,53,000

 

Working Note: –
Calculation of Amount of Subscriptions

Subscription received During the year 1,81,000
Add: – Subscription outstanding at the end of the year 5,500
Subscription received in advance at the beginning of the year 6,000
  1,92,500
Less: – Subscription outstanding at the beginning of the year 8,000
Subscription received in advance at the end of the year 4,000
The amount for subscription credited to the Income and Expenditure A/c 1,80,500

Calculation of Total Interest on Investment
Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 40,000
Rate of Interest = 10%
Period = from 01/10/18 to 31/03/19 i.e. 6 months
(from the date of purchase to the end of the financial year)
= 40,000 X 10/100 X 6/12
Total Interest on Investment = 1,000/-

Calculation Accrued amount of Interest on Investment  
Total Amount of Interest on Investment For the F/Y 19-20 1,000
Less: – Total Amount Interest on Investment received For the F/Y 19-20 0
Accrued amount of Interest on Investment For the F/Y 19-20 1,000

 

Calculation of the amount of Profit/loss on the sale of Sports Equipment  
Sale Value of Sports Equipment 6,000
Less: – Book Value of Sports Equipment 10,000
Loss on sale of Sports Equipment – 4,000

 

Calculation of the amount of consumption of Sports Equipment  
Opening Balance of Sports Equipment 50,000
Add: – Purchase of Sports Equipment during the year 20,000
Less: – Book Value of Sports Equipment 10,000
  60,000
Less: – Closing Value of Sports Equipment 45,000
Loss on sale of Sports Equipment  15,000

Calculate Depreciation on Billiards Table
Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 60,000
Rate of Depreciation = 10%
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 60,000 X 10/100 X 12/12
Depreciation = 6,000/-

Calculate Tournament Fund  
Opening Tournament Fund 60,000
Add: – Received Donation for tournament 20,000
Less: – Tournament Expenses 65,000
Closing Tournament Fund 15,000

 

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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)

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 45 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms