Question 35 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 35 Chapter 1 of +2-A

Table of Contents

The solution of Question 35 Chapter 1 of +2-A: –

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)

Preparation of Income and Expenditure Account

35. Prepare Income and Expenditure Account for the year ended 31st March 2019 from the following:-

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts	Rs.	Payments	Rs.
To Balance b/d (Cash)	1,80,000	By Salaries	4,80,000
To Subscriptions	9,00,000	By Rent	50,000
To Sale of Investments	2,00,000	By Stationery	20,000
To Sale of Old Furniture	30,000	By Defense Bonds	3,00,000
(Book Value Rs. 40,000)
To Donations	10,000	By Furniture	2,00,000
		By Bicycles	30,000
		By Balance c/d (Cash)	2,40,000
	13,20,000		13,20,000

The solution of Question 35 Chapter 1 of +2-A: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure	Amount	Income	Amount
To Salaries A/c	4,80,000	By Subscriptions A/c	9,00,000
To Rent A/c	50,000	By Donation A/c	10,000
To Stationery A/c	20,000
To Loss on sale of Old Furniture A/c	10,000
To Surplus (Balancing Figure)	3,50,000
	9,10,000		9,10,000

Note:

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These Following items are related to Balance sheet (i.e. These are assets or Liabilities) Related to Assets: – Sale of Investments, Sale of Old Furniture(only profit/loss treated), Defence Bonds (this is an investment), Furniture, Bicycles.