Question 46 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 46 Chapter 1 of +2-A

Question 46 Chapter 1 of +2-A

46. From the following Receipts and Payments Account and additional information relating to the star Cricket Club, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts    Rs. Payments   Rs. 
To Balance B/d     By Upkeep of Fields   20,000
Cash in Hand 1st April 2018` 10,000   By Tournament Expenses   7,000
Cash at Bank as per pass Book 20,000 30,000 By Rates and Insurance   2,000
To Members’ Subscriptions   50,000 By Telephone   500
To Admission Fee   3,000 By Stationery   1,000
To Sale of Old Bats, etc.   500 By General Charges   500
To Hire of Ground   3,000 By Secretary’s Honorarium   2,000
To Subscriptions for Tournament   10,000 By Bats, Balls, Etc.    7,000
To Donations   75,000 By Balance C/d    
To Legacy Donations   25,000 Cash in Hand 31st March 2019 1,00,000  
      Cash at Bank as per Pass Book 56,500 1,56,500
    1,96,500     1,96,500

Assets on 1st April 2018:

The stock of Bats and Balls  15,000
Stationery 2,000
Subscriptions Due 5,000

Subscription due on 31st March 2019 amounted to Rs 7,500. Write off 50% of Bats, Balls(not considering sale) and 25% of stationery.

The solution of Question 46 Chapter 1 of +2-A

: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure

Amount Income
Amount
To Upkeep of Fields   20,000 By Members’ Subscriptions *1 50,000  
To Rates and Insurance   2,000 Add: Outstanding for 2018-19 7,500  
To Telephone   500 Less: Outstanding for 2017-18 5,000 52,500
To General Charges   500 By Admission Fee   3,000
To Secretary’s Honorarium   2,000 By Sale of Old Bats, etc.   500
To Depreciation on Bats, Balls, etc. *2   11,000 By Hire of Ground   3,000
To Stationery Consumed *3   750 By Donations   1,00,000
To Surplus(Balancing Figure)   1,22,250      
    1,59,000   1,59,000

* Means: – see the working note for calculation

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
      The stock of Bats and Balls 15,000
      Printing and Stationery 2,000
      Subscriptions Outstanding 5,000
      Cash at Bank 30,000
         
         
         
Capital Fund (Balancing Figure)   52,000    
    52,000     52,000

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets  Amount
Capital Fund   52,000   Subscriptions   7,500
Add: – Surplus   1,22,250 1,74,250 Outstanding Bats and Balls 15,000  
Subscription for Tournament   10,000   Add: Purchases 7,000  
Less: Tournament Expenses   (7,000) 3,000   22,000  
        Less: 50% Written-off 11,000 11,000
        Printing and Stationery 2,000  
        Add: Purchase 1,000  
          3,000  
        Less: 25% Written-off 750  
        Printing and Stationery   1,56,500
             
  1,77,250   52,000

Working Note: –
*1: – Calculation of Amount of Subscriptions

Subscription received During the year 50,000
Add: – Subscription outstanding at the end of the year 7,500
Subscription received in advance at the beginning of the year
  57,500
Less: – Subscription outstanding at the beginning of the year 5,000
Subscription received in advance at the end of the year
The amount for subscription credited to the Income and Expenditure A/c 52,500

*2:- Calculate Depreciation on Bats and Balls
Depreciation = Value of Asset X Rate of Depreciation X Period

Value of Asset = 15,000 + 7 000
Rate of Depreciation = 50%
Period = from 01/04/18 to 31/03/19 i.e. 12 months
(from the date of purchase/Beginning balance to the end of the financial year)
= 22,000 X 50/100 X 12/12
Depreciation = 11,000/-

*3:- Calculation of the amount of consumption of Stationery Items  
Opening Balance of Stationery Items 2,000
Add: – Purchase of Stationery Items during the year 1,000
  3,000

Consumption of Stationery Items @ 25%
Consumption = Value of Stationery Items X Rate of Write off
= 3000 X 25%
= 750

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Also, Check out the solved question of previous Chapters: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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2 Book 1 min - Question 46 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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