Question 43 Chapter 1 of Class 12 Part - 1 VK Publication

Question 43 Chapter 1 of Class 12 Part – 1

Table of Contents

Gavaskar Cricket Club gives you the following Receipts and Payments Account for the year ended 31st March, 2018:

Receipts		Rs.	Payments		Rs.
To Balance b/d			By Salaries and Wages		12,000
At Office	150		By Sports Equipment		46,785
At Bank	14,200	14,350	By Stationery and Printing		1,220
To Subscriptions		61,000	By Maintenance of Ground		6,000
To Admission Fees		350	By Prizes		1,060
To Interest on Investments @9% per annum for full year		9,000d	By Balance c/d
			At Office	380
			At Bank	17,355	17,735
		84,800			84,800

The following additional information is provided to you:

Particulars	1st April 2017	31st March 2018
(a) Subscriptions Due	480	560
(b) Subscriptions Received in Advance	80	40
(c) Sports Equipment	21,800	29,700
(d) Land and Buildings (cost less depreciation)	80,000	76,000

Prepare Income and Expenditure Account for the year ended 31st March, 2018 and
Balance Sheet as at that date.

The solution of Question 43 Chapter 1 of Class 12 Part – 1: –

Gavaskar Cricket Club

Income and Expenditure Account

For the year ended on 31st March, 2018

Expenditure		Amount	Income		Amount
To Salaries and Wages		12,000	By Subscriptions	61,000
To Stationery and Printing		1,220	Less: Outstanding in the beginning	(480)
To Maintenance of ground		6,000	Add: Outstanding at the end	560
To Depreciation on Land and Building		4,000	Add: Received in Advance in the beginning	80
To Prizes		1,060	Less: Received in Advance at the end	(40)	61,220
To Sports Equipments used			By Admission fees		350
Sports equipments purchased	46,785		By Interest on Investment		9,000
Add: Opening stock of sports equipments	21,800
Less: Closing stock of sports equipments	(29,700)
To Surplus. i.e., Excess of Income over Expenditure		7,405
		70,570			70,570

Balance Sheet (as at 1st April 2017)

Liabilities	Amount	Assets	Amount
Subscription Received in Advance	80	Sports Equipments 2180	21,800
		Land and Building	80,000
		Cash in Hand	150
		Cash at Bank	14,200
Capital Fund (Balancing Figure)	2,16,550	Outstanding Subscriptions	480
		Investment =100×9,000/9	50,000
	2,16,630		2,16,630

Balance Sheet (as at 31st March 2018)

Liabilities		Amount	Assets	Amount
Subscription Received in Advance		40	Investment	1,00,000
Capital Fund	2,16,550		Outstanding Subscriptions	560
Add: Surplus	7,405	2,23,995	Land and Building	76,000
			Sports Equipments	29,700
			Cash in Hand	380
			Cash at Bank	17,355
		2,23,995		2,23,995