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

Question 45 Chapter 1 of +2- Part-

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:
a) Of the membership subscription, Rs. 2,400 relates to 2014 and Rs. 4,800 is outstanding for 2015.
b) Sale of furniture represents old furniture of Rs.4,000 out of the balance of Rs.32,000 as on 31.12.2014:

  As on 31.12.14 As on 31.12.15
(c) Advertisement bills unpaid 400 560
(d) Salary Outstanding 800 1,200
(e) Accrued income on investments Nil 960

f) Depreciation to be charged on the closing balance of furniture @10%.
You are required to prepare:
(a) the Income and Expenditure Account for the year ended 31st December 2015 and
(b) the 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 contribution 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 March 2015
Liabilities
Amount Assets
Amount
Capital Fund:     Cash in hand   1,360
-Balance on 1-4-16 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)

34,400 120
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 31-12-2014
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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 45 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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