Question 43 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 1 of +2- Part-

Question 43 Chapter 1 of +2-Part-1

43. (I & E A/c/ B/S/ Furniture) Following Receipts and Payments Account of Hero Club for the year ending 31st March 2017:

RECEIPTS AND PAYMENTS ACCOUNT
Receipts  Rs. Payments Rs. 
To cash in hand 4,080 By salaries 18,640
To subscriptions   By rent 7,440
  2015-16 1,000 By electricity 3,120
  2016-17 12,200 By printing and stationary 1,320
  2017-18 1,400 By insurance premium 720
To entrance fees 4,000 By general expenses 1,840
To sale of refreshments 30,000 By purchase of new furniture 18,000
To loan taken from Mr. Smart 8,000 By cash in hand 9,600
  60,680   60,680

You are also informed that:

a) Outstanding and prepaid expenses on 31st March were:

Year Rent due Electricity bill due Subscription due Prepaid insurance
2015-16 720 2,560 1,000 200
2016-17 1,440 800 1,600 280

b) Cost of refreshments sold were Rs.20,000. The surplus is to be treated as income.
c) On 31st March, 2016, the book value of furniture was Rs.12,000. New furniture was purchased on 1st October, 2016. Depreciation is to be provided @10% p.a.
d) Entrance fees is to be treated as revenue.
e) Loan from Mr. Smart was taken on 1st October, 2016. Interest @10% p.a. is payable there on.
You are required to prepare:
(a)the Income and Expenditure Account for the year ended 31st March 2017 and
(b) the balance sheet as on that date.

 

The solution of Question 43 Chapter 1 of +2 Part-1

: – 

 

Income and Expenditure account of Hero Club
For the year ending 31st March 2017
Expenditure
Amount Income
Amount
To salaries   18,640 By entrance fees   4,000
To rent 7,440   By subscriptions 12,200  
Add: outstanding(closing) 1,440   Add: outstanding(closing) 1,440 13,800
Less: outstanding(opening) 720 8,160 By sale of refreshments   30,000
To electricity 3,120   By the excess of expenditure over income   6,660
Add: outstanding(closing) 800        
Less: outstanding(opening) 2,560 1,360      
To printing and stationary   1,320      
To insurance premium 720        
Add: prepaid at the beginning 200        
Less: prepaid at the end 280 640      
To general expenses   1,840      
To cost of refreshments   20,000      
To depreciation on furniture(See Note)   2,100      
To interest on the loan(6 months)   400      
    54,460     54,460

 

Balance Sheet
As on 31st March 2017

Liabilities
Amount Assets
Amount
Capital Fund:     Cash in hand   9,600
-Balance on 1-4-16 34,000   Outstanding Subscriptions   1,600
Add: Deficiency 6,660 27,340 Prepaid insurance   280
Outstanding electricity   800 Furniture 12,000  
Outstanding rent   1,440 Add: Purchased 18,000  
Subscription received in advance   1,400 Less: Depreciation 2,100 27,900
-Loan of Smart 8,000        
Add: Outstanding interest

400 8,400      
           
           
           
    39,380     39,380



Working Note:

1) Depreciation on Furniture:

On 12,000 @10% for 1 Year 1,200
On 18,000 @10% for 1/2 Year 900
  2,100

 

2. Opening Capital Fund:

Balance Sheet
As on 31st December 2014
Liabilities
Amount Assets
Amount
Outstanding Rent   720 Furniture   12,000
      Cash in hand   4,080
Outstanding Electricity   2,560 Subscription due   1,000
Capital Fund (Balancing Figure)   34,000 Prepaid insurance   200
      Stock of refreshments   20,000
    37,280     37,280

3. Cost of refreshments sold is assumed to be opening stock of refreshments.

 

 

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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 43 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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