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Question 39 Chapter 1 of Class 12 Part – 1 VK Publication

Question 39 Chapter 1 of Class 12 Part - 1 VK Publication
Question 39 Chapter 1 of Class 12 Part - 1 VK Publication

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Question 39 Chapter 1 of Class 12 Part – 1

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39. Following is Receipts and Payments Account of Free Medical Aid Society for the
31st March, 2018:

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

ReceiptsRs.PaymentsRs.
To Cash in hand on 1st April, 20177,000By Payment for Medicines30,000
To Subscriptions50,000By Honorarium to Doctors10,000
To Sundry Donations14,500By Salaries27,500
To Interest on Investment @ 7% for the year 10,0007,000By Sundry Expenses500
To Charity Show Proceeds10,000By Equipment purchased15,000
  By Charity Show Expenses1,000
  By Cash in hand on 31st March, 20184,500
 88,500 88,500

Additional Informations:

Items April, 2017 MarchApril, 2017 MarchApril, 2017 March
(i) Subscription due5001,000
(ii) Subscription received in advance1,000500
(iii) Stock of Medicines10,00015,000
(iv) Amount due to medicines suppliers8,00012,000
(v) Value of Equipments21,00030,000
(vi) Value of Building40,00033,000

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You are required to prepare:
(a) Income and Expenditure Account for the year ended 31st March, 2018.
(b) Balance Sheet as at that date

The solution of Question 39 Chapter 1 of Class 12 Part – 1: – 

Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure
 
AmountIncome
 
Amount
To Medicines consumed:     
Payment for Medicines30,000 By Subscriptions50,000 
Add: Opening Stock of Medicines10,000 Add. Outstanding at the end1,000 
Add: Outstanding amount for Medicine Suppliers at the end12,000 Less: Outstanding in the beginning(500) 
Less: Closing Stock of Medicine(15,000) Add: Received in Advance (beginning) 1,0001,000 
Less: Outstanding amount for Medicine Suppliers in the beginning(8,000)29,000Less: Received in Advance (end)(500)51,000
To Honorarium to Doctors 10,000By Sundry Donations 14,500
To Salaries 27,500By Interest on Investments 7,000
To Sundry expenses 500By Charity Show Proceeds10,000 
To Depreciation on Equipments  Less: Charity Show Expenses1,0009,000
Equipment Purchased15,000    
Add Opening Stock of Equipment21,000    
 36,000    
Less: Closing stock of Equipment30,0006,000   
To Depreciation on Building (40,000-38,000) 2,000 2,000   
To Surplus 6,500   
  81,500  81,500

 Opening Balance Sheet (as at 1st April 2017)

Liabilities 

AmountAssets
 
Amount
Subscriptions Received in Advance 1,000Cash in hand7,000
Amount due to Medicines Suppliers 8,000Investments1,00,000
Capital Fund (Balancing figure) 1,69,500Outstanding Subscriptions500
   Stock of medicines10,000
   Equipments21,000
   Building40,000
  1,78,500 1,78,50

 

 Balance Sheet (as at 1st March 2018)

LiabilitiesAmountAssetsAmount
Subscriptions Received in Advance 1,000Cash in hand4,500
Amount due to Medicines Suppliers 8,000Investments1,00,000
Capital Fund (Balancing figure) 1,69,500Outstanding Subscriptions1,000
Add. Surplus 6,500Stock of medicines15,000
   Equipments30,000
   Building38,000
  1,88,500 1,88,50

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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

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

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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)

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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

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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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