Question 40 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.40 Chapter No.1 T.S. Grewal 2 Book Part A 2019 Solution min min 1024x576 - Question 40 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1

Question 40 Chapter 1 of +2-A

40. Prepare Income and Expenditure Account from the following particulars of  Youth Club for the year ended on 31st March 2018

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2018
Receipts    Rs. Payments Rs. 
To Balance b/d (Cash)   32,500 By Salaries  31,500
To Subscriptions:     By Postage 1,250
     2016-17 1,500   By Rent 9,000
     2017-18 60,000   By Printing and Stationery 14,000
     2018-19 1,800 63,300 By Sports Material 11,500
To Donations (Billiards Table)   90,000 By Miscellaneous Expenses 3,100
To Entrance Fees   1,100 By Furniture (1st October 2017) 20,000
To Sale of Old Magazines    450 By 10% Investment(1st October, 2017) 70,000
      By Balance c/d  1,80,000
    1,87,350   1,87,350

The solution of Question 40 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2018)
Expenditure
Amount Income
Amount
To Salaries   31,500 By Subscription 2017 – 18 60,000  
To Postage   1,250 Add: O/s Sub. for 2018 -19* 15,000 75,000
To Rent   9,000 By Entrance Fees   1,100
To Printing and Stationery   14,000 By Sale of Old Magazines   450
To Miscellaneous Expenses   3,100 By Interest on Investment *   3,500
To Depreciation on Furniture*   1,000      
To Sports Material Used*   10,000      
To Surplus(Balancing Figure)   10,200      
    80,050       80,050

Working Note: –

Calculate Outstanding Subscription for the Year 2017-18
Particulars
Amount
Total Outstanding Subscription as on 31-03-18 16,200
Less:- Subscription outstanding for the F/y 2016-17 1,200
Outstanding Subscription for the year 2017-18 15,000

Calculate Depreciation on Furniture

Depreciation = Value of Asset X Rate of Depreciation X Period
Value of Asset = 20,000
Rate of Depreciation = 10%
Period = from 01/10/17 to 31/03/18 i.e. 6 months
(from the date of purchase to the end of the financial year)
= 20,000 X 10/100 X 6/12
Depreciation = 1,000/-

Calculate Interest on Investment

Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 70,000
Rate of Depreciation = 10%
Period = from 01/10/17 to 31/03/18 i.e. 6 months
(from the date of purchase to the end of the financial year)
= 70,000 X 10/100 X 6/12
Interest on Investment = 3,500/-

Calculate Sports Material used during the year 2017-18
Particulars
Amount
Opening balance of Sports Material 3,000
Add:- Total payment made during the year for sport material 11,500
  14,500
Less:- The closing balance of Sports Material 4,500
Sports Material used during the year 2017-18 which will be transferred to Income and Expenditure account 10,000

 

Not-for-Profit Organisations – Meaning and Overview

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

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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

2 Book 1 min - Question 40 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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