Question 36 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 36 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

By Shubham Sharma 5 Min Read September 8, 2022

Question No.36 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

Question 36 Chapter 1 of +2-A

Table of Contents

The solution of Question 36 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

36. Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts	Rs.	Payments	Rs.
To Balance b/d (Cash at Bank)	2,01,000	By Salaries of Nurses	65,600
To Subscriptions	1,11,500	By Board, Laundry and Domestic help	38,000
To Fees from Non-member	27,000	By Rent, Rates and Taxes	20,000
To Government Grant	1,00,000	By Cost of Car	2,00,000
To Donations For building Fund	1,56,000	By Expenses of Car	84,000
To Interest	3,800	By Drugs and Incidental Expenses	67,000
		By Balance c/d (Cash at Bank)	1,24,700
	5,99,300		5,99,300

The solution of Question 36 Chapter 1 of +2-A: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure		Amount	Income		Amount
To Salaries of Nurses		65,600	By Subscriptions	1,11,500	9,00,000
To Board, Laundry and Domestic help		38,000	Less: – Donation for Building	10,000	10,000
To Rent, Rates and Taxes		20,000	By Fees from Non-member		27,000
To Expenses of Car		84,000	By Government Grant		1,00,000
To Drugs and Incidental Expenses	67,000		By Interest		3,800
Add: – O/S Amount	12,800	79,800
			By Deficit (Balancing Figure)		55,100
		2,87,400			2,87,400

Note: –

Opening and Closing balance of Cash Account are assets so it will be transferred to Balance sheets.
If Donation is got for specific Assets then it will be treated in the Balance sheet. In this question, the donation is received for the Building Fund.
Cost of Car is also an asset So, it will be treated in the balance sheet.