Question 37 Chapter 1 of +2-Part-1
37. (Income & Expenditure A/c/ Donation, Life membership fees, Entrance fees) The Receipts and Payments Account for the year ending 31st December 2017 of the Deep Sensation Club is given below:
|To donations||4,000||By Rent||9,000|
|To life membership fees||5,000||By salaries||11,500|
|To entrance fees||2,500||By furniture||2,000|
|To subscriptions||6,750||By electricity||600|
|To bar receipts||25,000||By bar purchases||20,000|
|To journey receipts||1,800||By journey expenses||1,505|
|To billiard fees||500||By Telephone||370|
|To table tennis fees||250||By postage||120|
|To card room receipts||125||By bank balance||1,430|
|To grant from Calcutta Corporation||1,000||By cash balance||400|
a) The entire amount of Donations, three fourth of the Life membership fees and one half of the Entrance fees are to be capitalized.
b) Subscriptions received in advance are Rs 250 and outstanding Rs.1,000.
c) Rs.200 was unrealized on Journey account.
d) Rent includes advance payment for three years.
e) Salaries include an advance of Rs.500 and a sum of Rs.1,000 remained unpaid as on 31st December.
f) Furniture is to be depreciated by 6%.
g) Bar stock as at 31st December amounted to Rs. 5,000.
h) Telephone rent had been paid up to 31st March, 2018.
You are required to prepare an Income and Expenditure Account for 2017.
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The solution of Question 37 Chapter 1 of +2 Part-1
|Income and Expenditure account of Deep Sensation Club
For the year ending 31st December 2017
|To rent||9000||By life membership fees||5,000|
|Less: Prepaid 3/4th||6,750||Less: Capitalized (3/4)||3,750||1,250|
|To Salaries||11,500||By entrance fees||2500|
|Add: Outstanding||1,000||Less: Capitalized (1/2)||1,250||1,250|
|Less: Prepaid||500||12,000||By Subscriptions||6,750|
|To Electricity||600||Add: Outstanding||1,000|
|To bar purchases||20,000||Less: Received in advance||250||7,500|
|Less: Closing stock||5,000||15,000||By Bar receipts||25,000|
|To Journey expenses||1,505||By journey receipts||1,800|
|To Telephone||370||Add: Receivables||200||2,000|
|Less: Prepaid (3 months i.e.1/5th)||74||296||By Billiard Fees||500|
|To postage||120||By Table tennis fees||250|
|To depreciation on furniture||120||By Cardroom receipts||125|
|To excess of income over expenditure (Surplus)||6,984||By Grant from Calcutta Corporations||1,000|
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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