Question 37 Chapter 1 of Class 12 Part - 1 VK Publication

Question 37 Chapter 1 of Class 12 Part – 1

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The solution of Question 37 Chapter 1 of Class 12 Part – 1: –

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

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

37. From the Receipts and Payments Account of a club , and from the information supplied, prepare an Income and Expenditure A/c for the year ended 31st Dec., 2018 and the Balance Sheets as on 1-1-2018 and 31-12-2018.

Receipt and Payments Account (An Extract)
For the year ended 31st March, 2018

Receipts		Rs.	Payments	Rs.
To Balance		350	By Salaries	1,400
To Subscriptions:			By General Expenses	200
2017	250		By Electricity Charges	300
2018	1,000		By Books	500
2019	200	1,450	By Newspaper	400
To Hall Rent received		700	By Balance c/d	200
To Profit from entertainment		400
To Sale of Newspaper		100
		3,000		3,000

Additional Informations:
(i) The club has 50 members each paying an annual subscription of Rs. 25. Subscriptions outstanding on 31st December, 2017 were to the value of 7300
(ii) On 31st December, 2018 Salaries outstanding amounted to Rs. 100. Salaries paid in 2018 included Rs. 300 for the year 2017.
(iii) On 1-1-2018 the club owned Buildings valued at Rs. 10,000, Furniture worth 1,000 and Books Rs. 1,000.

The solution of Question 37 Chapter 1 of Class 12 Part – 1: –

Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure		Amount	Income		Amount
To Salaries	30,000		By Subscriptions	40,000
Less: Outstanding in the beginning	2,000		Add: Received in 2015-16 (10x 200)	2,000
	28,000		Add: Outstanding (50,000-42,000)	8,000
Less: Advance for the next year	3,000		By Surplus from Entertainment		50,000
	25,000		Receipts	20,000
Add: Outstanding at the end	4,000	29,000	Less: Payments	12,000
To Electricity Charges		6,000	By Sale of old Newspapers		8,000
To General Expenses		4,000	By Interest on General Investments		800
To Stationery and Printing		4,000			500
To Newspapers		4,000
To Garden Expenses		6,000
To Loss on sale of Furniture		800
To Surplus, i.e., Excess of Income over Expenditure		5,500
		59,300			59,300

Balance Sheet (as at 31st March 2018)

Liabilities		Amount	Assets		Amount
To Salaries Paid	1,400		By Subscriptions	1,000
Add: Outstanding at the end	100		Add: Outstanding at the end	250	1,250
Less: Outstanding in the beginning	(300)	1,200	By Hall rent received		700
To General Expense		200	By Profit from entertainment		400
To Electricity charges		300	By Sale of old newspapers		100
To Newspaper		400
To Surplus		350
		2,450			2,450

Working Note:

To ascertain Capital Fund, Balance Sheet is prepared as at 1st April, 2016 as under:

Balance Sheet (as at 1st January2018)

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Liabilities	Amount	Assets	Amount
Capital Fund	12,350	Buildings	10,000
Outstanding Salaries	300	Furniture	1,000
		Books	1,000
		Cash`	350
		Outstanding Subscriptions	300
	12,650		12,650

Balance Sheet (as at 1st December 2018)

Liabilities		Amount	Assets	Amount
Outstanding Salaries		100	Cash	200
Capital Fund	12,350		Books (1,000+ 500)	1,500
Add: Surplus	350	12,700	Investment	1,000
Subscriptions Received in Advance		200	Building	10,000
			Outstanding Subscriptions (250+50)	300
		13,000		13,000