Question 35 Chapter 1 of +2-Part-1
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:
|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 Electricity Bill expenses||110|
|By sundry expenses||210|
|By balance on hand||5,520|
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.
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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
|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 Sundry Expenses||210|
|To excess of income over expenditure (Surplus)||9,563|
1) Locker Rent and GST:
Locker rent is received on last date of the year, the entry passed will be:
|Output CGST a/c||Dr.||3.50|
|Output SGST a/c||Dr.||3.50|
|To Locker Rent a/c||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.
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I
- Chapter No. 3 – Partnership Accounts – II (Introduction)
- Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
- Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
- Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
- 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 (Balance Sheet Only)
- Chapter No. 2 – Techniques of Financial Statement Analysis
- Chapter No. 3 – Ratio Analysis
- Chapter No. 4 – Cash Flow Statement