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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

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Question 40 Chapter 1 of +2-A

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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.PaymentsRs. 
To Balance b/d (Cash) 32,500By Salaries 31,500
To Subscriptions:  By Postage1,250
     2016-171,500 By Rent9,000
     2017-1860,000 By Printing and Stationery14,000
     2018-191,80063,300By Sports Material11,500
To Donations (Billiards Table) 90,000By Miscellaneous Expenses3,100
To Entrance Fees 1,100By Furniture (1st October 2017)20,000
To Sale of Old Magazines  450By 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
AmountIncome
Amount
To Salaries 31,500By Subscription 2017 – 1860,000 
To Postage 1,250Add: O/s Sub. for 2018 -19*15,00075,000
To Rent 9,000By Entrance Fees 1,100
To Printing and Stationery 14,000By Sale of Old Magazines 450
To Miscellaneous Expenses 3,100By 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 31-03-1816,200
Less:- Subscription outstanding for the F/y 2016-171,200
Outstanding Subscription for the year 2017-1815,000

Calculate Depreciation on Furniture

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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 Material3,000
Add:- Total payment made during the year for sport material11,500
 14,500
Less:- The closing balance of Sports Material4,500
Sports Material used during the year 2017-18 which will be transferred to Income and Expenditure account10,000

 

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)

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)

 

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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