Question 37 Chapter 1 of Class 12 Part – 1
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)
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 |
Working Note:
Outstanding Subscriptions for 2017 = 300 [(O/s at 31.12.2017) – 250 (received during 2018)] = 50
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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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