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

Question 45 Chapter 1 of +2- Part-
Q-45 - CH-1 - Usha +2 Book 2018 - Solution

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Question 45 Chapter 1 of +2-Part-1

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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.PaymentsRs. 
To opening balance1,600By rent4,800
To membership subscription40,000By advertisement2,080
To subscription for dinner8,000By furniture6,400
To donation for flood relief4,000By flood relief expenses4,800
To legacy1,200By salary5,760
To sale of furniture3,200By expenses for dinner8,800
To miscellaneous income800By miscellaneous expenses1,600
  By investments20,000
  By Upkeep of ground3,200
  By closing balance1,360
 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:

 20142015
3) Advertisement bills unpaid400560
4) Salary Outstanding8001,200
5) Accrued income on investmentsNil960

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
AmountIncome
Amount
To rent 4,800By Subscription For dinner 8,000
To advertisements2,080    
Add: outstanding  (closing)560 By membership subscription40,000 
Less: outstanding (opening)4002,240Add: outstanding for 20154,800 
To flood relief expenses 4,800Less: Outstanding for 20142,40042,400
To salary5,760 By donation for flood relief 4,000
Add: outstanding (closing)1,200 By miscellaneous income 800
Less: outstanding (opening)8006,160By income from investments 960
To expenses for dinner 8,800By 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
AmountAssets
Amount
Capital Fund:  Cash in hand 1,360
-Balance on 1-Dec-1434,800 Outstanding Subscriptions 4,800
Add: Surplus21,52056,320Accrued income on investments 960
Outstanding advertisement 560Furniture (32,000+6,400+4,000)

34,400 
Outstanding salary 1,200Less: Depreciation3,44030,960
   Investments 20,000
  58,080  58,080

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Working Note:
1. Opening Capital Fund:

Balance Sheet As on 31-Dec-2014
Liabilities
AmountAssets
Amount
Outstanding Advertisement 400Furniture 32,000
Outstanding Salary 800Cash in hand 1,600
Capital Fund (Balancing Figure) 34,800Subscription 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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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