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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

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Question 35 Chapter 1 of Class 12 Part – 1

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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

ReceiptsRs.PaymentsRs.
To Balance b/d3,190By Salaries30,000
To Subscriptions550By Entertainment Expenses12,000
2015-162,000By Electricity Charges6,000
2016-1740,000By General Expenses4,000
2017-184,000By General Investments20,000
To Entertainment Receipts20,000By Stationery and Printing4,000
To Sale of old Furniture (Book Value of Rs. 2,000)1,200By Newspaper4,000
To Sale of Old Newspapers800By Garden Expenses6,000
To Donation to Sports fund40,000By Furniture6,000
To Interest on Sports fund24,000By Expenses on Sports Events20,000
  By Sports Fund Investments40,000
  By balance c/d10,000
 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

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Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure AmountIncome Amount
To Salaries30,000 By Subscriptions40,000 
Less: Outstanding in the beginning2,000 Add: Received in 2015-16 (10x 200)2,000 
 28,000 Add: Outstanding (50,000-42,000)8,000 
Less: Advance for the next year3,000 By Surplus from Entertainment 50,000
 25,000 Receipts20,000 
Add: Outstanding at the end4,00029,000Less: Payments12,000 
To Electricity Charges 6,000By Sale of old Newspapers 8,000
To General Expenses 4,000By 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 AmountAssets Amount
Subscriptions Received in advance 1,000Cash 10,000
Salaries Outstanding 8,000Sports Fund Investments2,00,000 
Sports Fund 1,69,500Add: Additions during the year40,0002,40,000
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 2015-161,000 
   for the year 2016-178,0009,000
   Furniture22,000 
   Add: Additions during the year6,000 
    28,000 
   Less: Sale2,00026,000
   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:

 Balance Sheet (as at 1st April 2016)

LiabilitiesAmountAssetsAmount
Salaries Outstanding 2,000Subscriptions Outstanding (2,000+ 1,000)3,000
Subscriptions Received in advance 2,000Cash30,000
Sports Fund 2,00,000Sports Fund Investments2,00,000
Capital Fund (balancing figure) 4,51,000Furniture22,000
   Land and Building4,00,000
  6,55,000 6,55,000

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

Chapter No. 1 – Accounting Not for Profit Organisations

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

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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)

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)

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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

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Chapter No. 5 – Cash Flow Statement

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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