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

Question 46 Chapter 1 of +2-A
Question No.46 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

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Question 46 Chapter 1 of +2-A

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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 Book20,00030,000By Rates and Insurance 2,000
To Members’ Subscriptions 50,000By Telephone 500
To Admission Fee 3,000By Stationery 1,000
To Sale of Old Bats, etc. 500By General Charges 500
To Hire of Ground 3,000By Secretary’s Honorarium 2,000
To Subscriptions for Tournament 10,000By Bats, Balls, Etc.  7,000
To Donations 75,000By Balance C/d  
To Legacy Donations 25,000Cash in Hand 31st March 20191,00,000 
   Cash at Bank as per Pass Book56,5001,56,500
  1,96,500  1,96,500

Assets on 1st April 2018:

The stock of Bats and Balls 15,000
Stationery2,000
Subscriptions Due5,000

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

AmountIncome
Amount
To Upkeep of Fields 20,000By Members’ Subscriptions *150,000 
To Rates and Insurance 2,000Add: Outstanding for 2018-197,500 
To Telephone 500Less: Outstanding for 2017-185,00052,500
To General Charges 500By Admission Fee 3,000
To Secretary’s Honorarium 2,000By Sale of Old Bats, etc. 500
To Depreciation on Bats, Balls, etc. *2 11,000By Hire of Ground 3,000
To Stationery Consumed *3 750By Donations 1,00,000
To Surplus(Balancing Figure) 1,22,250   
  1,59,000 1,59,000

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* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)
Liabilities
AmountAssets
Amount
  The stock of Bats and Balls15,000
  Printing and Stationery2,000
  Subscriptions Outstanding5,000
  Cash at Bank30,000
Capital Fund (Balancing Figure)52,000  
 52,000  52,000

 

Balance Sheet (for the year ended 31st March 2018)
Liabilities
AmountAssets Amount
Capital Fund52,000 Subscriptions 7,500
Add: – Surplus1,22,2501,74,250Outstanding Bats and Balls15,000 
Subscription for Tournament10,000 Add: Purchases7,000 
Less: Tournament Expenses(7,000)3,000 22,000 
   Less: 50% Written-off11,00011,000
   Printing and Stationery2,000 
   Add: Purchase1,000 
    3,000 
   Less: 25% Written-off750 
   Printing and Stationery 1,56,500
      
 1,77,250 52,000

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

Subscription received During the year50,000
Add: – Subscription outstanding at the end of the year7,500
Subscription received in advance at the beginning of the year
 57,500
Less: – Subscription outstanding at the beginning of the year5,000
Subscription received in advance at the end of the year
The amount for subscription credited to the Income and Expenditure A/c52,500

*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 Items2,000
Add: – Purchase of Stationery Items during the year1,000
 3,000

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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. G

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

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)

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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