# Question 39 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-39 - CH-1 - Usha +2 Book 2018 - Solution

Question 39 Chapter 1 of +2-Part-1

39. (I & EA/c/ B/S/ Opening Capital Fund) Following is the Receipts and
Payments Account of Cultural Society for the year ending 31-3-2017:

 RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st march, 2017 Receipts Rs. Payments Rs. To balance b/d 10,000 By pay and Allowances 32,250 To entertainment fees 30,000 By printing and stationary 3,120 To grants from government 15,000 By library books 2300 To interest on securities 150 By insurance (up to 30-6-2017) 400 To rent for hall 500 By computer items 240 To donations (for sports) 5,000 By repairs 990 By building additions 2,350 By office expenses 3,000 By balance c/d 16,000 60,650 60,650

Assets on 31-3-2016 were :
Furniture Rs.17,500; Building Rs.80,000; Library Books Rs.12,000; Investments Rs. 5,000.
On 31-3-2017:
Outstanding entertainment fees Rs.1,100;
Provide depreciation: Building 5%, Furniture 15% and library books 20%.
Prepare the Income and Expenditure Account of the Cultural Society for the year ending 31st March 2017 and the Balance Sheet as on that date.

## The solution of Question 39 Chapter 1 of +2 Part-1: –

 Income and Expenditure account of Cultural Society For the year ending 31st March 2017 Expenditure Amount Income Amount To Pay and Allowances 32,250 By entertainment fees: 5,000 To insurance 400 Add: Outstanding 100 5,100 Less: Prepaid 100 300 By grants from Government 15,000 To printing and stationary 3,120 By interest on securities 150 To computer expenses 240 By hall rent 500 To Office Expenses 3,000 By excess of expenditure of income(Deficit) 2,753 To repairs 990 To depreciation: Building [(80,000 + 2350)x 15/100] 4,118 Furniture (17,500 x 15/100) 2,625 Library Books (12,000 + 2300 x 20% ) 2,860 9,603 49,503 49,503

 Balance Sheet As on 31st March 2017 Liabilities Amount Assets Amount Capital Fund: Cash in hand 16,000 -Balance on 1-4-16 (WN1) 1,24,500 Prepaid Insurance 100 Less: Deficiency 2753 Library Books 12,000 Add: Donation for sports 5,000 1,26,747 Add: Purchased 2,300 Less: Depreciation 2,860 11,440 Furniture 5,000 Less: Depreciation 2,625 14,875 Building 80,000 Add: Purchased 2,350 Less: Depreciation 4,118 78,232 Investments 5,000 Outstanding entertainment fees 1,100 1,26,747 1,26,747

Working Note:
1) Capital Fund as of 1st April, 2016 :

 Cash 10,000 Furniture 17,500 Building 80,000 Library Books 12,000 Investments 5,000 1,24,500

Calculation of Amount of Depreciation on Building :

 opening balance = 80,000 x 5 =4,000 100

Question 39 Chapter 1 of +2-Part-1

39. (I & EA/c/ B/S/ Opening Capital Fund) Following is the Receipts and
Payments Account of Cultural Society for the year ending 31-3-2017:

 RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st march, 2017 Receipts Rs. Payments Rs. To balance b/d 10,000 By pay and Allowances 32,250 To entertainment fees 30,000 By printing and stationary 3,120 To grants from government 15,000 By library books 2300 To interest on securities 150 By insurance (up to 30-6-2017) 400 To rent for hall 500 By computer items 240 To donations (for sports) 5,000 By repairs 990 By building additions 2,350 By office expenses 3,000 By balance c/d 16,000 60,650 60,650

Assets on 31-3-2016 were :
Furniture Rs.17,500; Building Rs.80,000; Library Books Rs.12,000; Investments Rs. 5,000.
On 31-3-2017:
Outstanding entertainment fees Rs.1,100;
Provide depreciation: Building 5%, Furniture 15% and library books 20%.
Prepare the Income and Expenditure Account of the Cultural Society for the year ending 31st March 2017 and the Balance Sheet as on that date.

## The solution of Question 39 Chapter 1 of +2 Part-1: –

 Income and Expenditure account of Cultural Society For the year ending 31st March 2017 Expenditure Amount Income Amount To Pay and Allowances 32,250 By entertainment fees: 5,000 To insurance 400 Add: Outstanding 100 5,100 Less: Prepaid 100 300 By grants from Government 15,000 To printing and stationary 3,120 By interest on securities 150 To computer expenses 240 By hall rent 500 To Office Expenses 3,000 By excess of expenditure of income(Deficit) 2,753 To repairs 990 To depreciation: Building [(80,000 + 2350)x 15/100] 4,118 Furniture (17,500 x 15/100) 2,625 Library Books (12,000 + 2300 x 20% ) 2,860 9,603 49,503 49,503

 Balance Sheet As on 31st March 2017 Liabilities Amount Assets Amount Capital Fund: Cash in hand 16,000 -Balance on 1-4-16 (WN1) 1,24,500 Prepaid Insurance 100 Less: Deficiency 2753 Library Books 12,000 Add: Donation for sports 5,000 1,26,747 Add: Purchased 2,300 Less: Depreciation 2,860 11,440 Furniture 5,000 Less: Depreciation 2,625 14,875 Building 80,000 Add: Purchased 2,350 Less: Depreciation 4,118 78,232 Investments 5,000 Outstanding entertainment fees 1,100 1,26,747 1,26,747

Working Note:
1) Capital Fund as of 1st April, 2016 :

 Cash 10,000 Furniture 17,500 Building 80,000 Library Books 12,000 Investments 5,000 1,24,500

Calculation of Amount of Depreciation on Building :

 opening balance = 80,000 x 5 =4,000 100
 purchase = 2,350 x 5 =118 100 4118

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

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