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

Question 35 Chapter 1 of Class 12 Part – 1

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

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

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

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

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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:

Balance Sheet (as at 1st April 2016)

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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