Question 40 Chapter 1 of Class 12 Part - 1 VK Publication

Question 40 Chapter 1 of Class 12 Part – 1

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The solution of Question 40 Chapter 1 of Class 12 Part – 1: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

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

40. From the following Receipts and Payments Account for the year ended 31st March, 2017 Bright Future of Youth Association, you are required to prepare Income and Expenditure Account and the Balance Sheet as at the same date after considering the given adjustment :

Receipt and Payments Account

Receipts	Rs.	Payments	Rs.
To Balance b/d	20,000	By Salaries for Training Staff	5,000
To Donations	1,000	By Furniture	850
To Interest on Investments	4,000	By Rent	1,150
To Subscriptions	30,000	By Stationery	20,000
To Entrance Fees	15,000	By Investments	160
		By Harmonium to Lecture	1,000
		By Balance b/d	12,000
	70,000		70,000

Adjustments: (i) 40% of the entrance fees should be considered as income of the current
year. (ii) Out of the subscriptions received Rs. 200 are for the previous year and Rs. 100 for the next year. Subscriptions of Rs. 500 are outstanding for the current year. (iii) Rent of
Rs. 200 is unpaid. (iv) Interest accrued but not received on investment Rs. 500. (v) Provide
depreciation on furniture at 20%. (vi) Capital Fund on 1st April, 2016 was Rs. 20,200.

The solution of Question 40 Chapter 1 of Class 12 Part – 1: –

Bright Future of Youth Association

Income and Expenditure Account

For the year ended on 31st March, 2017

Expenditure		Amount	Income		Amount
To Salaries for Training		30,000	By Donation		1,000
To Rent	850		By Interest on Investment	4,000
Add. Outstanding	200	1,050	Add: Accrued Interest	500	4,500
To Stationery		1,150	By Subscriptions	30,000
To Honorarium to Lecturer		1,000	Less: Received for previous year	(200)
To Depreciation on Furniture		1,000	Less: Received in advance for next year	(100)
To Surplus, ie., Excess of Income over Expenditure		7,500	Add: Outstanding for current year	500	30,200
			By Entrance fees (40% of Rs. 15,000)		6,000
		41,700			41,700

Balance Sheet (as at 31st March 2018)

Liabilities		Amount	Assets		Amount
Capital Fund	20,200		Investment	20,000
Add. Surplus	7,500	27,700	Add: Accrued Interest	500	20,500
Outstanding Rent		200	Furniture	5,000
Entrance fees (15,000-6,000)		9,000	Less: Depreciation	1,000	4,000
Subscriptions received in advance		100	Cash		12,000
			Outstanding Subscriptions		500
		37,000			37,000