Question 41 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 41 Chapter 1 of +2-A

Question 41 Chapter 1 of +2-A

41. Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs. 
To Balance b/d (Cash) 18,000 By Building  4,00,000
To Donations for Building 4,50,000 By Project Expenses (Young Talent Search and Development) 90,000
To Donations 50,000 By Match Expenses 90,000
To Government  Grant (Young Talent     1,00,000 By Furniture 1,21,000
     search and Development)      
To Life Membership Fees 40,000 By 10% of Investments  11,500
To Match Fund 80,000      (Purchased on 1st July 2018)  
To Subscriptions 52,000 By Salaries 70,000
To Locker Rent 4,000 By Insurance 3,500
To Interest on Investments 10,000 By Sundry Expenses 4,700
To Sale of Furniture (Book value Rs 80,000) 1,00,000 By Balance c/d (Cash) 4,800
To Entrance Fees 50,000 By Bank(Young Talent Search and Development) 10,000
  1,87,350   1,87,350

Additional Information:

  1. During the year ended 31st March 2019, the Club had 550 members and each paying an annual subscription of Rs 100.
  2. Salaries Outstanding as at 1st April 2018 were Rs 10,000 and as at 31st March, 2019 were  Rs 5,000.
    Prepare Income and Expenditure Account of the Club for the year ended 31st March 2019.

The solution of Question 41 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2018)
Expenditure

Amount Income
Amount
To Salaries   70,000   By Subscription 2018-19 52,000  
Add: – Closing O/s Salary   5,000   Add: O/s Sub. for 2018 -19* 3,000 55,000
Less: – Opening O/s Salary     10,000 65,000 By Donation   50,000
To Insurance     3,500 By Locker Rent   4,000
To Sundry Expenses     4,700 By Interest on Investment * 10,000  
To Match Expenses*   90,000   Add: Accrued Interest* 2,000 12,000
Less: – Match Fund   80,000 10,000 By Entrance Fees   50,000
        By Profit on Sale of Furniture*   20,000
To Surplus(Balancing Figure)     1,07,800      
      1,91,000       1,91,000

 

Working Note: –

Calculate Outstanding Subscription for the Year 2017-18
Particulars
Amount
Total Subscription due of the year 2018-19  
(Numbers of Member X Amount of Annual Subscription per member)  
550 Members X 100 Per member 55,000
Less: – Subscription received During the year for the F/y 2018-19 52,000
Outstanding Subscription for the year 2018-19 3,000

Calculation of Interest on Investment
Interest on Investment = Value of Investment X Rate of Interest X Period

Value of Asset = 1,60,000
Rate of Interest = 10%
Period = from 01/07/18 to 31/03/19 i.e. 9 months
(from the date of purchase to the end of the financial year)
= 1,60,000 X 10/100 X 9/12
Interest on Investment = 12,000/-

Calculation Accrued amount of Interest on Investment
Total Amount of Interest on Investment For the F/Y 19-20 12,000
Less: – Total Amount Interest on Investment received For the F/Y 19-20 10,000
Accrued amount of Interest on Investment For the F/Y 19-20 2,000

 

Calculation of the amount of Profit/loss on the sale of Furniture
Sale Value of Furniture 1,00,000
Less: – Book Value of Furniture 80,000
Profit on sale of Furniture 20,000

 

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 41 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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