Question 45 Chapter 1 of +2-Part-1
45. (I & E A/c/ B/S/ Furniture) Following is the summary of cash transactions of Patalganga Sports Club for the year ending 31st December 2015:
| RECEIPTS AND PAYMENTS ACCOUNT | |||
| Receipts | Rs. | Payments | Rs. |
| To opening balance | 1,600 | By rent | 4,800 |
| To membership subscription | 40,000 | By advertisement | 2,080 |
| To subscription for dinner | 8,000 | By furniture | 6,400 |
| To donation for flood relief | 4,000 | By flood relief expenses | 4,800 |
| To legacy | 1,200 | By salary | 5,760 |
| To sale of furniture | 3,200 | By expenses for dinner | 8,800 |
| To miscellaneous income | 800 | By miscellaneous expenses | 1,600 |
| By investments | 20,000 | ||
| By Upkeep of ground | 3,200 | ||
| By closing balance | 1,360 | ||
| 58,800 | 58,800 | ||
Further information:
1) Of the membership subscription, Rs. 2,400 relates to 2014 and Rs. 4,800 is outstanding for 2015.
2) Sale of furniture represents old furniture of Rs.4,000 out of the balance of Rs.32,000 as on 31.12.2014:
| 2014 | 2015 | |
| 3) Advertisement bills unpaid | 400 | 560 |
| 4) Salary Outstanding | 800 | 1,200 |
| 5) Accrued income on investments | Nil | 960 |
6) Depreciation to be charged on the closing balance of furniture @10%.
You are required to prepare the Income and Expenditure Account for the year ended 31st December 2015 and
and to draw up a balance sheet as on that date.
The solution of Question 45 Chapter 1 of +2 Part-1: –
| Income and Expenditure account of Patalganga Sports Club For the year ending 31st December 2015 |
|||||
| Expenditure |
Amount | Income |
Amount | ||
| To rent | 4,800 | By Subscription For dinner | 8,000 | ||
| To advertisements | 2,080 | ||||
| Add: outstanding (closing) | 560 | By membership subscription | 40,000 | ||
| Less: outstanding (opening) | 400 | 2,240 | Add: outstanding for 2015 | 4,800 | |
| To flood relief expenses | 4,800 | Less: Outstanding for 2014 | 2,400 | 42,400 | |
| To salary | 5,760 | By donation for flood relief | 4,000 | ||
| Add: outstanding (closing) | 1,200 | By miscellaneous income | 800 | ||
| Less: outstanding (opening) | 800 | 6,160 | By income from investments | 960 | |
| To expenses for dinner | 8,800 | By legacy | 1,200 | ||
| To miscellaneous expenses | 1,600 | ||||
| To Upkeep of ground | 3,200 | ||||
| To loss on sale of furniture(4,000-3,200) | 800 | ||||
| To depreciation on furniture 10% on Rs.(6,400+32,000-4,000) |
3,440 | ||||
| To surplus c/d | 21,520 | ||||
| 57,360 | 57,360 | ||||
| Balance Sheet As on 31st December 2015 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Capital Fund: | Cash in hand | 1,360 | |||
| -Balance on 1-Dec-14 | 34,800 | Outstanding Subscriptions | 4,800 | ||
| Add: Surplus | 21,520 | 56,320 | Accrued income on investments | 960 | |
| Outstanding advertisement | 560 | Furniture (32,000+6,400+4,000) |
34,400 | ||
| Outstanding salary | 1,200 | Less: Depreciation | 3,440 | 30,960 | |
| Investments | 20,000 | ||||
| 58,080 | 58,080 | ||||
Working Note:
1. Opening Capital Fund:
| Balance Sheet As on 31-Dec-2014 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Outstanding Advertisement | 400 | Furniture | 32,000 | ||
| Outstanding Salary | 800 | Cash in hand | 1,600 | ||
| Capital Fund (Balancing Figure) | 34,800 | Subscription due: | 2,400 | ||
| 36,000 | 36,000 | ||||
Note: In the absence of any instructions, the legacy has been treated as revenue income as the amount was very small.
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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
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