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

Question 37 Chapter 1 of +2- Part-
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:

ReceiptsAmountPayments Amount
To donations 4,000By Rent9,000
To life membership fees5,000By salaries11,500
To entrance fees2,500By furniture2,000
To subscriptions6,750By electricity600
To bar receipts25,000By bar purchases20,000
To journey receipts1,800By journey expenses1,505
To billiard fees500By Telephone370
To table tennis fees250By postage120
To card room receipts125By bank  balance1,430
To grant from Calcutta Corporation1,000By cash balance400
 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
Expenditure AmountIncome
To rent9000 By life membership fees5,000 
Less: Prepaid 3/4th6,750 Less: Capitalized (3/4)3,7501,250
To Salaries11,500 By entrance fees2500 
Add: Outstanding1,000 Less: Capitalized (1/2)1,2501,250
Less: Prepaid50012,000By Subscriptions6,750 
To Electricity 600Add: Outstanding1,000 
To bar purchases20,000 Less: Received in advance2507,500
Less: Closing stock5,00015,000By Bar receipts 25,000
To Journey expenses 1,505By journey receipts1,800 
To Telephone370 Add: Receivables2002,000
Less: Prepaid (3 months i.e.1/5th)74296By Billiard Fees 500
To postage 120By Table tennis fees 250
To depreciation on furniture ( 2000 x 6/100 ) 120By Cardroom receipts 125
To excess of income over expenditure (Surplus) 6,984By Grant from Calcutta Corporations 1,000
  38,875  38,875

Thanks, Please Like and share with your friends  

Comment if you have any questions.


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

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution


Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms


error: Content is protected !!