Question 47 Chapter 1 of +2-A - T.S. Grewal 12 Class Part

Question 47 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

By Shubham Sharma 8 Min Read September 9, 2022

Question No.47 - Chapter No.1 - T.S. Grewal +2 Book Part-A 2019-Solution-min-min

Question 47 Chapter 1 of +2-A

Table of Contents

The solution of Question 47 Chapter 1 of +2-A: –

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)

47. From the following Receipts and Payments Account of Mumbai Theatre 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 Salary	20,000
Cash and Bank	1,40,000	By Repair Expenses	5,000
To Donations	50,000	By Furniture	60,000
To Subscriptions	1,20,000	By Miscellaneous Expenses	5,000
To Entrance Fees	10,000	By Investments	60,000
To Interest on Investments	1,000	By Insurance Premium	2,000
To Interest Received from Bank	4,000	By Billiard Table	80,000
To Sale of Old Newspapers	1,500	By Paper, Ink, etc.	1,500
To Sale of Drama Tickets	10,500	By Drama Expenses	5,000
		By Balance c/d:
		Cash and Bank	98,500
	3,37,000		3,37,000

Additional Information:
(i) Subscriptions in arrear for the year ended 31st March 2019 ₹ 9,000 and subscriptions in advance for the year ending 31st March 2020 ₹ 3,500.
(ii) Insurance Premium outstanding ₹ 400.
(iii) Miscellaneous expenses prepaid ₹ 900.
(iv) 8% interest has accrued on investment for five months.
(v) Billiard Table costing ₹ 3,00,000 was purchased during last year and ₹ 2,20,000 were paid for it.

The solution of Question 47 Chapter 1 of +2-A: –

Income and Expenditure Account (for the year ended 31st March 2019)
Expenditure		Amount	Income		Amount
To Salary		20,000	By Subscriptions *¹	1,20,000
To Repair Expenses		5,000	Add: Outstanding for 2018-19	9,000
To Miscellaneous Expenses	5,000		Less: Adv. Sub. for 2019-20	3,500	1,25,500
Less: Prepaid Expenses	900	4,100	By Donations		50,000
To Insurance Premium	2,000		By Entrance Fees		10,000
Add: Outstanding Premium	400	2,400	By Interest on Investments	1,000
To Paper, Ink, etc.		1,500	Add: Accrued Interest *²	2,000	3,000
To Drama Expenses.		5,000	By Interest received from Bank		4,000
			By Sale of Old Newspapers		1,500
			By Sale of Drama Tickets		10,500
To Surplus(Bal Fig.)		1,66,500
		2,04,500			2,04,500

* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)
Liabilities	Amount	Assets	Amount
Creditors for Billiard Table	80,000	Billiard Table	3,00,000
		Cash and Bank	1,40,000

Capital Fund (Balancing Figure)	3,60,000
	4,40,000		4,40,000

Balance Sheet (for the year ended 31st March 2018)
Liabilities		Amount	Assets	Amount
Capital Fund	3,60,000		Furniture	60,000
Add: – Surplus	1,66,500	5,26,500	Investments	60,000
Outstanding Insurance Premium		400	Billiard Table	3,00,000
Advance Subscriptions		3,500	Prepaid Miscellaneous Expenses	900
			Accrued Interest on Investments	2,000
			Outstanding Subscriptions	9,000
			Cash and Bank	98,500

		5,30,400		5,30,400

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

Subscription received During the year	1,20,000
Add: – Subscription outstanding at the end of the year	9,000
Subscription received in advance at the beginning of the year	–
	1,29,000
Less: – Subscription outstanding at the beginning of the year	–
Subscription received in advance at the end of the year	3,500
The amount for subscription credited to the Income and Expenditure A/c	1,25,500

*2: – Calculation of Total Interest on Investment
Interest on Investment = Value of Investment X Rate of Interest X Period
Value of Asset = 60,000
Rate of Interest = 8%
Period = 5 months(given in additional information)
= 60,000 X 8/100 X 5/12
Total Accrued Interest on Investment = 2,000/-

Thanks, Please Like and share with your friends

Comment if you have any questions.

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

Advertisement-X