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

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

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Question 40 Chapter 1 of Class 12 Part – 1

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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 

ReceiptsRs.PaymentsRs.
To Balance b/d20,000By Salaries for Training Staff5,000
To Donations1,000By Furniture850
To Interest on Investments4,000By Rent1,150
To Subscriptions30,000By Stationery20,000
To Entrance Fees15,000By Investments 160
  By Harmonium to Lecture1,000
  By Balance b/d12,000
 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: – 

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Bright Future of Youth Association

Income and Expenditure Account

For the year ended on 31st March, 2017

Expenditure
 
AmountIncome
 
Amount
To Salaries for Training 30,000By Donation 1,000
To Rent850 By Interest on Investment4,000 
Add. Outstanding2001,050Add: Accrued Interest5004,500
To Stationery 1,150By Subscriptions30,000 
To Honorarium to Lecturer 1,000Less: Received for previous year(200) 
To Depreciation on Furniture 1,000Less: Received in advance for next year(100) 
To Surplus, ie., Excess of Income over Expenditure 7,500Add: Outstanding for current year50030,200
   By Entrance fees (40% of Rs. 15,000) 6,000
  41,700  41,700

 Balance Sheet (as at 31st March 2018)

Liabilities 

AmountAssets
 
 Amount
Capital Fund20,200 Investment 20,000 
Add. Surplus7,50027,700Add: Accrued Interest50020,500
Outstanding Rent 200Furniture5,000 
Entrance fees (15,000-6,000) 9,000Less: Depreciation 1,0004,000
Subscriptions received in advance 100Cash 12,000
   Outstanding Subscriptions 500
  37,000  37,000

 

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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)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

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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)

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

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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

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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