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Question 42 Chapter 1 of +2-Part-1
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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 salaries | 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 1-1-15 | 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 on 2016 | 600 | Furniture | 12,000 | ||
| Add: Purchased | 5,960 | ||||
| Less: Sold | 320 | 17,640 | |||
| Stock of stationary | 400 | ||||
| Outstanding Subscription | 7,200 | ||||
| 1,78,160 | 1,78,160 | ||||
Working Note:
2. Opening Capital Fund:
| Balance Sheet As of 1 January 2015 | |||||
| Liabilities | Amount | Assets | Amount | ||
| Bank overdraft | 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 Stock of stationery | 1200 360 | ||||
| 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 (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
