# Question 45 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-45 - CH-1 - Usha +2 Book 2018 - Solution

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 furniture10% 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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