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

Shubham Sharma
Question 37 Chapter 1 of +2- Part-

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

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 - Question 37 Chapter 1 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

One thought on “Question 37 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1”

Leave a Reply

Your email address will not be published. Required fields are marked *