Question 42 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 42 Chapter 1 of +2- Part-

Question 42 Chapter 1 of +2-Part-1

42. (I & E A/c/ B/S/ Subscriptions) Following Receipts and Payments Account of Super Time Club for the year ending 31st December 2015:

RECEIPTS AND PAYMENTS ACCOUNT
Receipts    Rs. Payments Rs. 
To cash in hand   10,000 By bank overdraft(1.1.2015) 14,000
To subscriptions     By investments 13,600
2014 1,200   By furniture 5,960
2015 64,800   By salaries 20,400
2016 600 66,600 By printing and stationary 3,560
To entrance fees   2,680 By postage and telegrams 4,400
To proceeds for drama   8,160 By cost of drama 7,000
To interest from securities   2,000 By sundry expenses 5,600
To sale proceeds from old furniture(B.V.-Rs.320)   400 By balance c/d :   
       Cash in hand 3,320
       Cash at bank 12,000
    89,840   89,840

You are required to compile the Income and Expenditure Account for the year ended 31st December 2015 and the balance sheet as on that date after taking into account the following information:
a) On 1st January, 2015, the club premises stood at Rs.1,00,000; Investments at Rs.24,000 and Furniture at Rs.12,000.
b) The club had 720 members each paying an annual subscription of Rs.100.
Liabilities were:
c) Salaries for December 2015 amounting to Rs.1,600 are outstanding.
d) Half of the entrance fees are to be capitalized.
e) Stock of stationary on 31st December 2014 was Rs.360 and on 31st December 2015 was Rs.400.

 

The solution of Question 42 Chapter 1 of +2 Part-1

: – 

 

Income and Expenditure account of Super Time Club
For the year ending 31st December 2015
Expenditure
Amount Income
Amount
To salaries 20,400   By subscriptions: 64,800  
Add: outstanding 1,600 22,000 Add: outstanding
Rs. (720*100)-64,800
7200 72,000
To printing and stationary 3,560   By Entrance fees 2,680  
Add: opening stock 360   Less: Capitalized 1/2 1,340 1,340
Less: closing stock 400 3,520 By drama proceeds   8,160
To postage and telegrams   4,400 By interest on securities   2,000
To cost of drama   7,000 By profit on sale of furniture
Rs.(400-320)
  80
To sundry expenses   5,600      
To excess of income over expenditure(Surplus)   41,060      
    83,580     83,580

 

Balance Sheet
As on 31st March 2015

Liabilities
Amount Assets
Amount
Capital Fund:     Cash in hand   3,320
-Balance on 1-4-16 1,33,560   Cash at bank   12,000
Add: Surplus 41,060   Club premises   1,00,000
Entrance fees 1/2 1,340 1,75,960 Investments 24,000  
Outstanding salary   1,600 Add: Purchased 13,600 37,600
Subscription received in advance   600 Furniture 12,000  
      Add: Purchased 5,960  
      Less: Sold 320 17,640
      Stock of stationary   400
      Outstanding stationery   7,200
           
    1,78,160     1,78,160



Working Note:

2. Opening Capital Fund:

Balance Sheet
As on 31st December 2014
Liabilities
Amount Assets
Amount
Outstanding Rent   14,000 Cash in hand   10,000
      Club premises   1,00,000
Capital Fund (Balancing Figure)   1,33,560 Investments   24,000
      Furniture   12,000
      Subscription due   1,200
    1,47,560     1,47,560

 

 

 

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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
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

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2 Book 1 min - Question 42 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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