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

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.
b) Subscriptions received in advance are Rs 250 and outstanding Rs.1,000.
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
Receipts		Amount	Payments		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		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: –

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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