Question 43 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 43 Chapter 1 of +2-A

Table of Contents

The solution of Question 43 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

43. From the following Receipts and Payments Account of Social Club and the information supplied, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at the date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts		Rs.	Payments	Rs.
To Balance b/d (Cash)		7,000	By Salaries	28,000
To Subscriptions			By General Expenses	6,000
2017-18	5,000		By Electricity Charges	4,000
2018-19	20,000		By Books	10,000
2019-20	4,000	29,000	By Newspapers	8,000
To Hire of Ground		14,000	By Balance C/d	4,000
To Surplus from Entertainment Events		8,000
To Sale of Old Newspaper		2,000
		60,000		60,000

Additional Information:

The Club has 50 members each paying an annual subscription of Rs 500. Subscriptions Outstanding on 31st March 2018 were Rs 6,000.
On 31st March 2019, Salaries Outstanding amounted to Rs 2,000. Salaries paid in the year ended 31st March 2019 included Rs 6,000 for the year ended 31st March 2018.
On 1st April, 2018, the Club owned building valued at Rs 2,00,000; Furniture Rs 20,000 and Books Rs 20,000.
Provide Depreciation on Furniture at 10%.

The solution of Question 43 Chapter 1 of +2-A: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure		Amount	Income		Amount
To Salaries	28,000		By Subscription 2018-19	20,000
Add: – Closing O/s Rent	2,000		Add O/s Sub. for 2018 -19*	5,000	25,000
Less: – Opening O/s Salary	6,000	24,000	By Hire of Ground		14,000
To General Expenses		6,000	By Surplus from Entertainment Event		8,000
To Electricity Charges		4,000	By Sale of Old Newspapers		2,000
To Newspapers		8,000
To Depreciation on Furniture		2,000


To Surplus(Balancing Figure)		5,000
		49,000			49,000

Balance Sheet (for the year ended 31st March 2018)
Liabilities	Amount	Assets	Amount
Outstanding Salaries	6,000	Cash in Hand	4,000
		Building	2,00,000
		Furniture	20,000
		Books	20,000
Capital Fund(Balancing Figure)	2,47,000	Outstanding Subscription	6,000
	2,53,000		2,53,000

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Balance Sheet (for the year ended 31st March 2018)
Liabilities		Amount	Assets		Amount
Capital Fund	2,47,000		Cash in Hand		4,000
Add: – Surplus	5,000	2,52,000	Building		2,00,000
Outstanding Salaries		2,000	Furniture	2,0,000
Advance Subscription for 19-20		4,000	Less: Depreciation	2,000	18,000
			Outstanding Subscription		2,10,000
			2018-19	5,000
			2017-18	1,000	6,000
		2,58,000			2,58,000