Question 47 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 47 Chapter 1 of +2- Part-

Question 47 Chapter 1 of +2-Part-1

47. (I & E A/c/ B/S) Following is the Receipts and Payments account of Manav Sewa Sangh for the year ending 31st December 2015:

RECEIPTS AND PAYMENTS ACCOUNT
Receipts  Rs. Payments Rs. 
To balance b/d 800 By salaries 300
To subscriptions:   By stationary 300
2014 50 By rates 300
2015 1,000 By telephone charges 100
2016 200 By investments(4% Govt securities purchased on 30.6.2015) 1,000
To admission fees 3,200 By sundry expenses 150
To dividend on shares 800 By balance c/d 500
  2,650   2,650

Further information:
1) There are 600 members paying annual premium Of Rs. 2 per head, Rs.90 being in arrear for 2014 at the beginning of 2015.
2) Stock of stationery on 31st December 2014 was Rs.200, on 31st December, 2015-Rs.100.
3) The rates were paid for 15 months up to 31st March 2016.
4) Sundry expenses outstanding on 31st December 2014 were Rs.50.
5) Telephone charges for 3 months outstanding, the amount due is Rs.40.
6) At 31st December 2014 – investments in shares were Rs.4,000.
7) At 31st December 2014 – the building stood in the books at Rs.10,000 and it is required to write off depreciation at 5% p.a.
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 47 Chapter 1 of +2 Part-1

: – 

 

Income and Expenditure account of Manav Sewa Sangh
For the year ending 31st December 2015
Expenditure
Amount Income
Amount
To salaries   300 By subscriptions 1,000  
To stationary 300   Add: outstanding (600*2)-1,000 200 1,200
Add: opening stock 200   By dividend on shares   200
Less: closing stock 100 400 By interest on investments
(1,000*4/100*6/12)
  20
To rates 300   By excess of expenditure over income   260
Less: Prepaid 1/5 60 360      
To telephone charges 100        
Add: outstanding 40 140      
To sundry expenses 150        
Less: paid for 2014 50 100      
To depreciation on building @5%   500      
           
           
    1,680     1,680

 

Balance Sheet
As on 31st March 2015

Liabilities
Amount Assets
Amount
Capital Fund:     Cash in hand   500
-Opening Balance 15,040   Outstanding Subscriptions:    
Add: Admission fees 400   -2014 40  
Less: Deficiency 260 15,180 -2015 200 240
Outstanding telephone charges   40 Stock of stationary   100
Subscriptions received in advance   200 Prepaid rates   60
      Investments in shares   4,000
      4% Investments   1,000
      Accrued interest   20
      Building 10,000  
      Less: Depreciation 500 9,500
    15,420     15,420



Working Note:

1. Opening Capital Fund:

Balance Sheet
As on 1st January 2015
Liabilities
Amount Assets
Amount
Outstanding sundry expenses   50 Outstanding Subscriptions   90
Capital Fund (Balancing Figure)   15,040 Cash in hand   800
      Stock of stationary   200
      Building   10,000
      Investments in shares   200
    15,090     15,090

 

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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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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