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Question 48 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 48 Chapter 1 of +2- Part-
Q-48 - CH-1 - Usha +2 Book 2018 - Solution

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Question 48 Chapter 1 of +2-Part-1

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48. (I & E A/c/ B/S) From the trial balance and other information, given below for a school, prepare income and expenditure account for the year ended on 31-3-2015 and a balance sheet as on that date:

Debit balance Rs.Credit balanceRs. 
Building6,25,000Admission fees12,500
Furniture1,00,000Tuition fees received5,00,000
Library books1,50,000Creditors for supplies15,000
Investments @ 12%5,00,000Rent for the school hall10,000
Salaries5,00,000Miscellaneous receipts30,000
Stationary40,000Government grant3,50,000
General Expenses18,000General Fund10,00,000
Sports Expenses15,000Donation for library books62,500
Cash at bank50,000Sale of old furniture20,000
Cash in hand2,000  
 20,00,000 20,00,000

Additional information:
1) Fees yet to be received for the year are Rs.25,000.
2) Salaries yet to be paid amount to Rs.30,000.
3) Furniture costing Rs.40,000 was purchased in October 2014.
4) The book value of furniture sold was Rs.50,000 on April 1, 2014.
5) Depreciation is to be charged @10% p.a. on furniture, 15% on library books, and 5% on the building.

The solution of Question 48 Chapter 1 of +2 Part-1: – 

Income and Expenditure account For the year ending 31st March 2015
Expenditure
AmountIncome
Amount
To salaries5,00,000 By tuition fees5,00.000 
Add: Outstanding salaries30,0005,30,000Add: outstanding25,0005,25,000
To stationary 40,000By rent for a school hall 10,000
To general expenses 18,000By Miscellaneous receipts 30,000
To sports expenses 15,000By Government grant 3,50,000
To loss on sale of furniture (50,000 – 20,000) 30,000By interest on investments 60,000
To depreciation-furniture @10%  By admission fees 12,500
On 60,000 for 1 year6,000    
On 40,000 for ½ year2,0008,000   
-library books @ 15% 22,500   
-building @ 5% 31,250   
To excess of income over expenditure (surplus) 2,92,750   
  9,87,500  9,87,500

Note: Assumed that old furniture was sold at the end of the year so full year’s depreciation is charged.

Balance Sheet As on 31st March 2015
Liabilities
AmountAssets
Amount
Capital Fund:  Cash in hand 2,000
-Opening Balance10,00,000 Cash at bank 50,000
Add: Surplus2,92,75012,92,750Building6,25,000 
Creditors for supplies 15,000Less: depreciation31,2505,93,750
Outstanding salaries 30,000Furniture1,00,000 
Donation for library books 62,500Less: Depreciation8,000 
   Less: Sold50,00042,000
   Library books1,50,000 
   Less: Depreciation22,5001,27,500
   Investments-12% 5,00,000
   Accrued interest 60,000
   Outstanding fees 25,000
  14,00,250  14,00,250

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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

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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