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

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

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Question 37 Chapter 1 of Class 12 Part – 1

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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.PaymentsRs.
To Balance 350By Salaries1,400
To Subscriptions:  By General Expenses200
2017250 By Electricity Charges300
20181,000 By Books500
20192001,450By Newspaper400
To Hall Rent received 700By Balance c/d200
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: – 

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Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure AmountIncome Amount
To Salaries30,000 By Subscriptions40,000 
Less: Outstanding in the beginning2,000 Add: Received in 2015-16 (10x 200)2,000 
 28,000 Add: Outstanding (50,000-42,000)8,000 
Less: Advance for the next year3,000 By Surplus from Entertainment 50,000
 25,000 Receipts20,000 
Add: Outstanding at the end4,00029,000Less: Payments12,000 
To Electricity Charges 6,000By Sale of old Newspapers 8,000
To General Expenses 4,000By 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 

AmountAssets
 
Amount
To Salaries Paid1,400 By Subscriptions1,000 
Add: Outstanding at the end100 Add: Outstanding at the end2501,250
Less: Outstanding in the beginning(300)1,200By Hall rent received 700
To General Expense 200By Profit from entertainment 400
To Electricity charges 300By 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)

LiabilitiesAmountAssetsAmount
Capital Fund 12,350Buildings10,000
Outstanding Salaries 300Furniture1,000
   Books1,000
   Cash`350
   Outstanding Subscriptions300
  12,650 12,650

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Balance Sheet (as at 1st December 2018)

LiabilitiesAmountAssetsAmount
Outstanding Salaries 100Cash200
Capital Fund12,350 Books (1,000+ 500)1,500
Add: Surplus35012,700Investment1,000
Subscriptions Received in Advance 200Building10,000
   Outstanding Subscriptions (250+50)300
  13,000 13,000

Working Note:
Outstanding Subscriptions for 2017 = 300 [(O/s at 31.12.2017) – 250 (received during 2018)] = 50

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

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

Chapter No. 1 – Accounting Not for Profit Organisations

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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)

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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

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Chapter No. 4 – Ratio Analysis

Chapter No. 5 – Cash Flow Statement

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

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