Question 36 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 36 Chapter 1 of +2- Part-

Question 36 Chapter 1 of +2-Part-1

36. (Income & Expenditure Account) Given below is the Receipts and Payments Account of Club for the year ending 31st December 2018 :

Receipts Amount Payments  Amount
To balance b/d 1,500 By salaries 600
To subscriptions:   By expenses 100
2017 50 By drama expenses 500
2018 2,000 By newspapers 120
2019 80 By municipal taxes 60
To donations 550 By charity 400
To sale of drama tickets  1,050 By investments 2,000
To sale of waste paper 50 By electricity charges 200
To entrance fees 300 By payment of new furniture 1,000
    By balance c/d 600
  5,580   5,580

Prepare the club’s Income and Expenditure Account for the year ending 31st December, 2018 and its balance sheet at that date after taking the following information into account:
a) There are 400 members each paying Rs.5 as annual subscription. Rs.60 subscriptions still outstanding for 2017.
b) Municipal taxes amounting Rs.60 per annum have been paid upto 31st March, 2019.
c) 6% has accrued on investments for five months.
d) Buildings stand in the books at Rs.5,000 on 1-1-2018.

 

The solution of Question 36 Chapter 1 of +2 Part-1

: – 

 

Income and Expenditure account of ……. Club
For the year ending 31st December 2018

Receipts
Amount Payments
Amount
To salaries   600 By subscriptions   2,000
To expenses   100 By donations   550
To drama expenses   500 By sale of drama tickets   1,050
To newspapers   120 By sale of waste paper   50
To Municipal taxes: 60   By entrance fees   300
Less: Prepaid (3 months) 15 45 By interest on investments
(2,000*6/100*5/12)
  50
To Charity   400      
To Electricity   200      
To excess of income over expenditure (Surplus)   2,035      
    4,000     4,000

 

Balance Sheet
As on 31st December 2018

Liabilities
Amount Assets
Amount
Capital Fund:     Cash in hand   600
Opening balance 6,610   Building   5,000
Add: Surplus 15 8,645 Outstanding Subscriptions: 2017   60
Subscription for 2019 received in advance   80 Prepaid Municipal Taxes   15
      Accrued Interest   50
      Investments
(2,000*6/100*5/12)
  2,000
      Furniture   1,000
    8,725     8,725

 


Working Note:

1. Opening Capital Fund:

Balance Sheet
As on 1-1-2018
Liabilities
Amount Assets
Amount
Capital Fund ( Balancing Figure)   6,610 Cash in hand   1,500
      Outstanding Subscription (50+60)   110
      Building   5,000
    6,610     6,610

 

 

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

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

  • Chapter No. 1 – Accounting Not for Profit Organisations
  • Chapter No. 2 – Partnership Accounts – I
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

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

2 Book 1 min - Question 36 Chapter 1 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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