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Question 38 Chapter 1 of Class 12 Part – 1 VK Publication

Question 38 Chapter 1 of Class 12 Part - 1 VK Publication
Question 38 Chapter 1 of Class 12 Part - 1 VK Publication

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Question 38 Chapter 1 of Class 12 Part – 1

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38. From the following Receipts and Payments Account of Agra Music Club and information given below, prepare the Income and Expenditure Account for the year ending 31st March, 2018 and Balance Sheet as at that date:

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

ReceiptsRs.PaymentsRs.
To Balance on 1st April, 201720,000By Salaries20,000
To Entrance Fees2,000By Electricity Charges2,500
Subscriptions for the year By Rent 
2016-175,000By Printing and Stationery1,500
2017-1845,000By New Furniture purchased on 1st Oct., 201720,000
2018-197,000By Investments 12% p.a. on 1st July30,000
To Interest on Investments2,000By Other Expenses5,000
To Profit on entertainment12,000By Balance on 31st March, 201810,000
 93,000 93,000

Depreciate Furniture by 10% p.a. On 31st March, 2018, amount owing on account of salaries is Rs. 4,000; Subscriptions outstanding are Rs. 3,000. On 1st April, 2015 possessed Furniture worth Rs. 30,000 and owed Rs. 2,000 on account of Salaries.

The solution of Question 38 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 Salaries20,000 By Entrance fees 2,000
Add: Outstanding at the end 4,0004,000 By Subscriptions45,000 
Less: Outstanding in the beginning(2,000)22,000Add: Outstanding3,00048,000
To Electricity Charges 2,500By Interest on Investment2,000 
To Rent 4,000Add. Accrued Interest7002,7000
To Printing and Stationery 1,500By Profit on Entertainment 12,000
To Other Expenses 5,000   
To Depreciation on Furniture-     
on 30,000@ 10%3,000    
on 20,000@ 10% for 6 months1,0004,000   
To Surplus  25,700   
  64,700  64,700

 Balance Sheet (as at 31st March 2018)

Liabilities 

AmountAssets
 
Amount
Capital Fund53,00053,000Furniture (30,000+ 20,000)50,000 
Add: Surplus25,70078,700Less Depreciation4,00046,000
Outstanding Salaries 4,000Investment30,000 
   Add. Accrued Interest70030,700
   Cash 10,000
   Outstanding Subscriptions 3,000
  89,700  89,700

Working Notes:
1. Interest on Investments = 30,000 x 12/100 X 9/12 = Rs. 2,700
Accrued Interest = 2,700 -2,000 (already received) = Rs. 700
2. Calculation of Opening Capital Fund

Opening Balance Sheet (as at 1st April 2018)

LiabilitiesAmountAssetsAmount
Outstanding Salaries 2,000Furniture30,000
Capital Fund 53,000Cash20,000
   Outstanding Subscriptions5,000
  55,000 55,000

 

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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

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

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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)

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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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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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