Question 22 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 22 Chapter 1 of +2- Part-1

Question 22 Chapter 1 of +2-Part-1

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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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