Question 35 Chapter 1 of Class 12 Part – 1 VK Publication

Question 35 Chapter 1 of Class 12 Part - 1 VK Publication
Question 35 Chapter 1 of Class 12 Part - 1 VK Publication

Question 35 Chapter 1 of Class 12 Part – 1

35. From the following Receipts and Payments Account of Himani Sports Club for the year Ended 31st March, 2017 and the additional information, prepare an Income and Expenditure Account for the year ended 31lst March, 2017 and a Balance Sheet as at that date:

Receipt and Payments Account (An Extract)
For the year ended 31st March, 2018

Receipts Rs. Payments Rs.
To Balance b/d 3,190 By Salaries 30,000
To Subscriptions 550 By Entertainment Expenses 12,000
2015-16 2,000 By Electricity Charges 6,000
2016-17 40,000 By General Expenses 4,000
2017-18 4,000 By General Investments 20,000
To Entertainment Receipts 20,000 By Stationery and Printing 4,000
To Sale of old Furniture (Book Value of Rs. 2,000) 1,200 By Newspaper 4,000
To Sale of Old Newspapers 800 By Garden Expenses 6,000
To Donation to Sports fund 40,000 By Furniture 6,000
To Interest on Sports fund 24,000 By Expenses on Sports Events 20,000
    By Sports Fund Investments 40,000
    By balance c/d 10,000
  1,62,000   1,62,000

The club has 250 members each paying an annual subscription of Rs. 200. Rs. 1,000 are still in arrears for subscriptions for 2015-16. During the year 2015-16, 10 members had paid their Subscriptions for the year 2016-17 as well.
Salaries paid included Rs. 2,000 for the year 2015-16 and Rs. 3,000 for the year ending March, 2018. Outstanding salaries for the year ending on 31st March, 2017 amounted to Rs. 4,000. Interest for 3 months at 10% per annum has accrued on general investment.
On 1st April, 2016 the club owned land and building valued at Rs. 4,00,000 and furniture Valued at Rs. 22,000. On that date, it has Sports Fund Rs. 2,00,000. Sports Fund Investment Rs. 2,00,000.

The solution of Question 35 Chapter 1 of Class 12 Part – 1: – 

District Club

Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure   Amount Income   Amount
To Salaries 30,000   By Subscriptions 40,000  
Less: Outstanding in the beginning 2,000   Add: Received in 2015-16 (10x 200) 2,000  
  28,000   Add: Outstanding (50,000-42,000) 8,000  
Less: Advance for the next year 3,000   By Surplus from Entertainment   50,000
  25,000   Receipts 20,000  
Add: Outstanding at the end 4,000 29,000 Less: Payments 12,000  
To Electricity Charges   6,000 By Sale of old Newspapers   8,000
To General Expenses   4,000 By Interest on General Investments   800
To Stationery and Printing   4,000     500
To Newspapers   4,000      
To Garden Expenses   6,000      
To Loss on sale of Furniture   800      
To Surplus, i.e., Excess of Income over Expenditure   5,500      
    59,300     59,300

 Balance Sheet (as at 31st March 2018)

Liabilities  Amount Assets   Amount
Subscriptions Received in advance   1,000 Cash   10,000
Salaries Outstanding   8,000 Sports Fund Investments 2,00,000  
Sports Fund   1,69,500 Add: Additions during the year 40,000 2,40,000
Add: Donations     General Investments   20,000
Add: Interest     Interest accrued on General Investments   500
Less: Expenses on Sports events     Salaries paid in Advance   3,000
Capital Fund (WN)     Subscriptions Outstanding    
Add: Surplus     For the year 2015-16 1,000  
      for the year 2016-17 8,000 9,000
      Furniture 22,000  
      Add: Additions during the year 6,000  
        28,000  
      Less: Sale 2,000 26,000
      Land and Building   4,00,000
    7,08,500     7,08,500

Working Note:

To ascertain Capital Fund, Balance Sheet is prepared as at 1st April, 2016 as under:

Advertisement-X

 Balance Sheet (as at 1st April 2016)

Liabilities Amount Assets Amount
Salaries Outstanding   2,000 Subscriptions Outstanding (2,000+ 1,000) 3,000
Subscriptions Received in advance   2,000 Cash 30,000
Sports Fund   2,00,000 Sports Fund Investments 2,00,000
Capital Fund (balancing figure)   4,51,000 Furniture 22,000
      Land and Building 4,00,000
    6,55,000   6,55,000

 

Thanks, Please Like and share with your friends  

Comment if you have any questions.

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

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

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Advertisement-X

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

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

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

Advertisement-X

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Advertisement

error: Content is protected !!