Question 38 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 38 Chapter 1 of +2- Part-

Question 38 Chapter 1 of +2-Part-1

38. (I & EA/c/ Donation/ B/S/ Opening Fund Required/ GST) Following is the Receipts and Payments Account of Our Paradise Club for the year ending 31st March 2017:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2017
Receipts  Rs. Payments Rs. 
Cash in hand 50 Salaries 2,400
Cash at bank 565 Rent 720
Subscriptions(Including Rs.100 for 2015-16 and Rs.150 of 2017-18)   Postage 30
  4550 Printing and Stationery 255
Interest on Investments 2,000 Electricity Charges 300
Bank Interest 25 Meeting Expenses 150
Sale of Furniture 300 Purchase of library books 1,000
    Investments in Bonds 1,000
    Cash in hand 155
    Cash at Bank 1,480
  7,490   7,490

The following additional information is supplied to you:
1) On 1st April, 2016, the Club had the following assets and liabilities:
a) Investments costing Rs.40,000, (b) Furniture Rs.3,000, (c) library books Rs.5,000.
b) Liability for rent Rs.60 and for salary Rs.200
2) On 31st March 2017, rent of Rs.80 and Salary of Rs.250 were in arrear. Arrear of Rent is subject to levy of CGST & SGST @ 9% each.
3) The book value of Furniture was Rs.250.
Prepare the Income and Expenditure Account of the Club for the year ending 31st March, 2017 and the Balance Sheet as on that date.

 

The solution of Question 38 Chapter 1 of +2 Part-1

: – 

 

Income and Expenditure account of ……. Club
For the year ending 31st December 2018

Receipts
Amount Payments
Amount
To salaries 2,400   By subscriptions 5,000  
Add: outstanding 250   Less: Received for 2015-16 100  
Less: Paid for the previous year 200 2,450 Received for 2017-18 150 4,300
To rent 720   By interest on investments   2,000
Add: Outstanding 80   By bank interest   25
Less: Paid for the previous year 60 740 By profit on sale of furniture   50
To postage   30      
To printing and stationary   255      
To Electricity Charges   300      
To Meeting Expenses   150      
To excess of income over expenditure (Surplus)   2,450      
    6,375     6,375

 

Balance Sheet
As on 31st December 2017

Liabilities
Amount Assets
Amount
Outstanding Expenses :     Cash in hand   155
– Rent 99.40   Cash at Bank   1,480
 – Salary 250 344.40 Investments 40,000  
Subscription received in advance   150 Add: Purchased now 1,000 41,000
Capital Fund:     Furniture 3,000  
– Opening Balance 48,455   Less: Sold 250 2,750
Add: Surplus 2,450 50,905 Library books 5,000  
      Add : Purchased Now 1,000 6,000
      Input CGST   7.20
      Input SGST   7.20
    51,399.40     51,399.40

 


Working Note:

1. Opening Capital Fund:

Balance Sheet
As on 1-1-2016
Liabilities
Amount Assets
Amount
Outstanding Expenses :     Cash in hand   50
– Rent 60   Cash at Bank   565
– Salary 200 260 Outstanding Subscriptions   100
Capital Fund (Balancing Figure)   48,455 Investments   40,000
      Furniture   3,000
      Library Books   5,000
    48,715     48,715

 

2) Treatment of Outstanding Rent
For outstanding rent adjustment entry will be:

 

Particulars
L.F. Debit Credit
Rent a/c Dr.   80  
Input CGST a/c (9% of 80) Dr.   7.20  
Input SGST a/c (9% of 80) Dr.   7.20  
To Locker Rent a/c       94.40

O/S rent Rs. 80 is added in Income and Expenditure Account in Figure of rent paid. Input CGST & Input SGST of Rs. 7.20 each will be shown as current assets and O/S rent of Rs. 94.40 will be shown as current liability in balance sheet.

 

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

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

  • Chapter No. 1 – Accounting Not for Profit Organisations
  • Chapter No. 2 – Partnership Accounts – I
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

 

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

2 Book 1 min - Question 38 Chapter 1 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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