# Question 37 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-37 - CH-1 - Usha +2 Book 2018 - Solution

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:

 Receipts Amount Payments Amount 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 46,925 46,925

a) The entire amount of Donations, three fourth of the Life membership fees, and one-half of the Entrance fees are to be capitalized.
c) Rs.200 was unrealized on the Journey account.
d) Rent includes an advance payment for three years.
e) Salaries include an advance of Rs.500 and a sum of Rs.1,000 remained unpaid as of 31st December.
f) Furniture is to be depreciated by 6%.
g) Bar stock as of 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

## 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 Expenditure Amount Income Amount 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 ( 2000 x 6/100 ) 120 By Cardroom receipts 125 To excess of income over expenditure (Surplus) 6,984 By Grant from Calcutta Corporations 1,000 38,875 38,875

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