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

Question 48 Chapter 1 of +2- Part-

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. Payments 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

Further 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
Amount Income
Amount
To salaries 5,00,000   By tuition fees 5,00.000  
Add: Outstanding 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   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%   2,500      
-building @ 5%   31,250      
To excess of income over expenditure   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



 

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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
  • Chapter No. 3 – Partnership Accounts – II (Introduction)
  • Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)
  • Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)
  • Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)
  • Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)
  • 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 (Balance Sheet Only)
  • Chapter No. 2 – Techniques of Financial Statement Analysis
  • Chapter No. 3 – Ratio Analysis 
  • Chapter No. 4 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 48 Chapter 1 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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