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Question 36 Chapter 1 of +2-Part-1
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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 an annual subscription. Rs.60 subscriptions are still outstanding for 2017.
b) Municipal taxes amounting to Rs.60 per annum have been paid up to 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 | |||||
| Expenditure | Amount | Income | 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 (2,000 x 6/100 x 5/12) | 50 | |||
| Investments | 2,000 | |||
| Furniture | 1,000 | |||
| 8,725 | 8,725 | |||
Working Note:
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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 (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)
- 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
