Question 41 Chapter 1 of +2-Part-1
41. (I & E A/c/ B/S/ Depreciation on Sports Equipment)The treasurer of a Social Club has prepared the following Receipts and Payments Account for the year ended 31st March 2015:
| RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2015 | |||
| Receipts | Rs. | Payments | Rs. |
| Bank balance | 6,400 | Rent of rooms | 2,800 |
| Subscriptions | 20,000 | Wages of caretaker | 4,000 |
| Entrance fees | 3,000 | Purchase of sports equipment | 12,80 |
| Sale of refreshments | 7,600 | Dance expenses | 3,800 |
| Sale of dance tickets | 4,500 | Refreshment supplies | 5,200 |
| Interest on investments @7% for a full year | 3,500 | Secretary’s Expenses | 800 |
| General Expenses | 2,500 | ||
| Printing and stationary | 1,400 | ||
| Bank balance | 11,700 | ||
| 45,000 | 45,000 | ||
You are given the following information:
1. At 31.3.2014, assets comprised:
Furniture Rs.9,600; Sports equipment Rs.5,200; Subscriptions in arrears Rs.1,500;
Liabilities were:
Accrued Rent Rs. 600 and subscriptions received in advance Rs.400.
2. At 31.3.2015, assets comprised:
Furniture Rs.8,600; Sports equipment Rs.15,200; Subscriptions in arrears Rs.1,300;
Liabilities were:
Accrued Rent Rs. 300 and subscriptions received in advance Rs.1800.
The members require:
(a) Income and Expenditure Account for the year ended 31st March, 2015
(b) the Balance Sheet as on that date.
The solution of Question 41 Chapter 1 of +2 Part-1: –
| Income and Expenditure account of Social Club For the year ending 31st March 2015 |
|||||
| Expenditure |
Amount | Income |
Amount | ||
| To Wages of caretaker | 4,000 | By subscriptions: | 20,000 | ||
| To Dance expenses | 3,800 | Add: Outstanding | 1300 | ||
| To Refreshment supplies | 5,200 | Add: Received in advance | 400 | ||
| To Secretary’s Expenses | 800 | Less: Received for previous year | 1500 | ||
| To General Expenses | 2,500 | Less: Received in advance | 1,800 | 18,400 | |
| To Printing and stationary | 1,400 | By sale of refreshments | 7,600 | ||
| To depreciation on furniture | 1,000 | By Sale of dance tickets | 4,500 | ||
| To rent of rooms: | 2,800 | By Interest on investments | 3,500 | ||
| Add: Outstanding (closing) | 300 | ||||
| Less: Outstanding (opening) | 600 | 2,500 | |||
| To depreciation on sports equipment(WN1) | 2,800 | ||||
| To Surplus c/d | 10,000 | ||||
| 34,000 | 34,000 | ||||
| Balance Sheet As of 31st March 2015 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Outstanding Rent | 300 | Cash at bank | 11,700 | ||
| Entrance fees | 3,000 | Furniture | 9,600 | ||
| Subscriptions received in advance | 1,800 | Less: Depreciation | 1,000 | 8,600 | |
| Capital Fund: | Sports Equipment | 5,200 | |||
| Opening Balance | 71,700 | Add: Purchased | 12,800 | ||
| Add: Surplus | 10,000 | 81,700 | Less: Depreciation | 2,800 | 15,200 |
| Subscription due | 1,300 | ||||
| Investments (100/7*3,500) | 50,000 | ||||
| 86,800 | 86,800 | ||||
Working Note:
1) Depreciation on sports equipment:
| Opening balance | 5,200 |
| Add: Purchased during the year | 12,800 |
| 18,000 | |
| Less: Closing balance | 15,200 |
| Depreciation for the year | 2,800 |
2. Opening Capital Fund:
| Balance Sheet As on 1st April 2014 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Outstanding Rent | 600 | Furniture | 9,600 | ||
| Subscriptions received in advance | 400 | Sports equipment | 5,200 | ||
| Capital Fund (Balancing Figure) | 71,700 | Subscription due | 1,500 | ||
| Investments | 50,000 | ||||
| Cash at bank | 6,400 | ||||
| 72,700 | 72,700 | ||||
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Also, Check out the solved question of previous 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)
- 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
- 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
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