Question 35 Chapter 1 of +2 Part-1 - USHA Publication 12 Class Part

Question 35 Chapter 1 of +2-Part-1

Table of Contents

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

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

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

35. (Income & Expenditure Account/GST) The following is the Receipts and Payments Account of White Star Football Association for the first year ending 31st December 2015:

Receipts	Amount	Payments	Amount
To donations	50,000	By Pavilion offices (constructed)	40,000
To life member and entrance fees	4,000	By expenses in connection with matches	900
To receipts from football matches	8,000	By furniture	2,100
To Subscriptions	5,200	By investments	16,000
To Locker rents	50	By salaries	1,800
To interest on securities	240	By wages	600
To Sundries	350	By insurance	350
		By telephone	250
		By Electricity Bill expenses	110
		By sundry expenses	210
		By balance on hand	5,520
	67,840		67,840

a) Subscriptions outstanding for 2015 are Rs.250.
b) Salaries unpaid for 2015 are Rs.170.
c) Wages unpaid for 2015 are Rs. 90.
d) Outstanding bills for sundry expenses are Rs.40.
e) Donations received as well as life member fees and entrance fees have to be capitalized.
f) Locker Rent is received on 31st December inclusive of CGST & SGST of Rs.3.50 each and apply GST @18% on electricity bills if applicable.
Prepare from the details given above, an Income & Expenditure Account for the year ending 31st December 2015.

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

Income and Expenditure account of White Star Football Association For the year ending 31st December 2015
Receipts		Amount	Payments		Amount
To matches expenses		900	By receipts from matches		8,000
To salaries:	1800		By Subscriptions:	5,200
Add: Outstanding	170	1,970	Add: Outstanding	250	5,450
To Wages:	600		By Locker rents (50-3.50-3.50)		43
Add: Unpaid	90	690	By interest on securities		240
To Insurance		350	By sundry incomes		350
To Telephone		250
To Electricity		110
To Sundry Expenses	210
Add: Outstanding	40	250
To excess of income over expenditure (Surplus)		9,563
		14,083			14,083

Working Note:

1) Locker Rent and GST:
Locker rent is received on last date of the year, the entry passed will be:

Particulars		L.F.	Debit	Credit
Cash a/c	Dr.		50
To Locker Rent a/c				43
To Output CGST a/c				3.50
To Output SGST a/c				3.50

Out of this output CGST and output SGST will be shown as Current liability in the balance sheet.

2) Electricity Bill and GST:
Electricity bills are exempted from GST. Hence, no GST is applicable on the electricity bill.

Thanks, Please Like and share with your friends

Comment if you have any questions.

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

Advertisement-X

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

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

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

Question 35 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

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

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

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

Related