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

Question 35 Chapter 1 of +2- Part-

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:

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.   43  
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

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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