Question 41 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 41 Chapter 1 of +2- Part-

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 on 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 2016
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

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

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2 Book 1 min - Question 41 Chapter 1 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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