Question 36 Chapter 1 of Class 12 Part – 1 VK Publication


Question 36 Chapter 1 of Class 12 Part – 1


36. From the following information and Receipts and Payments Account of Patiala Club. Prepare an Income and Expenditure Account for the year ending 31st March, 2018 a Balance Sheet as at that date:

Receipt and Payments Account (An Extract)
For the year ended 31st March, 2018

To Balance b/d3,190By Rent1,680
To Entrance Fees550By Wages2450
To Subscriptions18,000By Electricity Charges720
To Donations1,650By Books purchased2,480
To Life Membership Fees2,500By Office Expenses4,500
To Interest on Deposits240By 8% Fixed Deposit (on 1st Oct., 2017)12,000
To Proceeds of Tournament2,320By Tournament Expenses2,000
  By Balance c/d260
 28,450 28,450

Additional Information:
On 31st March 2017, the Club possessed books worth Rs. 20,000 and furniture Rs. 8,500 Provide depreciation on these assets @10% including the purchases during the year.
Subscriptions in arrears at the beginning of the year amounted to Rs. 350 at end of the year Rs. 550 were outstanding.
The Club paid, three months rent in advance both in the beginning and at the end of the year.

The solution of Question 36 Chapter 1 of Class 12 Part – 1: –

Income and Expenditure Account


For the year ended on 31st March, 2018

To Rent  By Entrance fees 550
Add: Prepaid in the beginning1680 By Subscriptions18,000 
Less: Prepaid at the end420 Less. Outstanding in the beginning(350) 
To Wages(420)1,680Add: Outstanding at the end55018,200
To Electricity charges 2,450By Donations 1,650
To Office Expenses 720By Interest on Deposits240 
To Tournament Expenses 4,500Add: Accrued Interest240480
To Depreciation on 2,020 By Proceeds of Tournament 2,320
To Surplus, i.e., Excess of income over Expenditure 8,732   
  23,200  23,200

Balance Sheet (as at 31st March 2018)


Life Membership Fees 2,500Cash in hand 2,600
Capital Fund32,460 Outstanding Subscriptions 550
Add: Surplus8,73241,192Fixed Deposit12,000 
   Add: Accrued Interest24012,240
   Less: Depreciation8507,650
   Books (20,000+2,480)22,480 
   Less: Depreciation2,24820,232
   Prepaid Rent 420
  43,692  43,692

Working Notes:
I. Interest on Fixed Deposits = Rs. 12,000 x8/100 X 6/12 = Rs. 480
Accrued Interest on Deposits = 480 -240 (Received) = Rs. 240
2. Calculation of Opening Capital Fund

Balance Sheet (as at 31st March 2017)


Capital Fund (Balancing Figure) 32,460Cash in hand3,190
   Outstanding Subscriptions350
   Prepaid Rent420
  32,460 32,460


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Also, Check out the solved question of all 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

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


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