# 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

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 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

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