Question 22 Chapter 1 of +2-Part-1
Table of Contents
22. (Treatment of Expenses/B/S Treatment) During the year 31-3-2015, the expenses actually paid were Rs.13,440. Find out the actual expenses chargeable to Income and Expenditure account for the year ended 31-3-2015 if prepaid expenses and outstanding expenses are as follows:
| Particulars | Rs. |
| Prepaid expenses on 1-4-14 | 1,050 |
| Prepaid expenses on 31-3-15 | 1,365 |
| Outstanding expenses on 1-4-14 | 630 |
| Outstanding expenses on 31-3-15 | 1,806 |
Also show the extracts of Balance Sheet as on 31-3-14 and 31-3-15.
The solution of Question 22 Chapter 1 of +2 Part-1: –
| Income and Expenditure Account for the year ending 31-3-2015 |
||||
| Expenditure |
Amount | Income | Amount | |
| To Expenses: Paid | 13,440 | |||
| Add: Prepaid on 1.4.2014 | 1,050 | |||
| Outstanding on 31.3.15 | 1,806 | |||
| 16,296 | ||||
| Less: Prepaid on 31.3.15 | (1,365) | |||
| Outstanding on 1.4.14 | (630) | |||
| Advance paid for stationary at the end of year | 14,301 | 14,301 | ||
| Balance Sheet As on 1-4-2014 |
||||
| Liabilities |
Amount | Assets | Amount | |
| Outstanding Expenses | 630 | Prepaid expenses | 1,050 | |
| Balance Sheet As on 1-4-2015 |
||||
| Liabilities |
Amount | Assets | Amount | |
| Outstanding Expenses | 1,806 | Prepaid expenses | 1,365 | |
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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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