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

Q-48 - CH-1 - Usha +2 Book 2018 - Solution

Question 48 Chapter 1 of +2-Part-1

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 balance Rs. Building 6,25,000 Admission fees 12,500 Furniture 1,00,000 Tuition fees received 5,00,000 Library books 1,50,000 Creditors for supplies 15,000 Investments @ 12% 5,00,000 Rent for the school hall 10,000 Salaries 5,00,000 Miscellaneous receipts 30,000 Stationary 40,000 Government grant 3,50,000 General Expenses 18,000 General Fund 10,00,000 Sports Expenses 15,000 Donation for library books 62,500 Cash at bank 50,000 Sale of old furniture 20,000 Cash in hand 2,000 20,00,000 20,00,000

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 Amount Income Amount To salaries 5,00,000 By tuition fees 5,00.000 Add: Outstanding salaries 30,000 5,30,000 Add: outstanding 25,000 5,25,000 To stationary 40,000 By rent for a school hall 10,000 To general expenses 18,000 By Miscellaneous receipts 30,000 To sports expenses 15,000 By Government grant 3,50,000 To loss on sale of furniture (50,000 – 20,000) 30,000 By interest on investments 60,000 To depreciation-furniture @10% By admission fees 12,500 On 60,000 for 1 year 6,000 On 40,000 for ½ year 2,000 8,000 -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 Amount Assets Amount Capital Fund: Cash in hand 2,000 -Opening Balance 10,00,000 Cash at bank 50,000 Add: Surplus 2,92,750 12,92,750 Building 6,25,000 Creditors for supplies 15,000 Less: depreciation 31,250 5,93,750 Outstanding salaries 30,000 Furniture 1,00,000 Donation for library books 62,500 Less: Depreciation 8,000 Less: Sold 50,000 42,000 Library books 1,50,000 Less: Depreciation 22,500 1,27,500 Investments-12% 5,00,000 Accrued interest 60,000 Outstanding fees 25,000 14,00,250 14,00,250