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Question 47 Chapter 1 of +2-Part-1
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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 – Cash in hand | 800 | By salaries | 300 |
| To subscriptions: | By stationary | 300 | |
| 2014 (previous year) | 50 | By rates | 300 |
| 2015 | 1,000 | By telephone charges | 100 |
| 2016(new year) | 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 subscription 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 x 4/100 x 6/12) | 20 | |
| To rates | 300 | By excess of expenditure over income (deficit) | 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 (90 – 50) | 40 | ||
| Less: Deficiency | 260 | 15,180 | -2015 | 200 | 240 |
| Outstanding telephone charges | 40 | Stock of stationary | 100 | ||
| Subscriptions received in advance | 200 | Prepaid rates (300 x 3/15) | 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 | 4,000 | ||||
| 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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
