Question 49 Chapter 1 of +2-Part-1
49. (Trading a/c, I & E A/c/ B/S) The balance sheet of Royal Western Golf Club on 31st December 2014, disclosed the following position:
| Liabilities | Rs. | Assets | Rs. |
| Accumulated fund | 25,600 | Clubhouse at cost | 14,000 |
| Subscription in advance | 230 | Furniture and equipment | 7,500 |
| Creditor for bar expenses | 120 | Bar stock | 3,920 |
| Creditor for bar purchases | 3,800 | Subscriptions in arrears | 400 |
| Insurance in advance | 140 | ||
| Cash at bank | 3,790 | ||
| 29,750 | 29,750 |
The summary of the club’s cash book for the year ended 31st December 2014, shows:
| Receipts | Rs. | Payments | Rs. |
| Balance b/f | 3,790 | Bar purchases | 27,800 |
| Subscriptions | 13,600 | Rates | 1,000 |
| Bar takings | 32,800 | Insurance | 600 |
| Locker rents | 460 | Wages | 14,200 |
| Printing and stationary | 300 | ||
| Bar expenses | 650 | ||
| Balance c/f | 6,100 | ||
| 50,650 | 50,650 |
It is ascertained that:
1) Wages includes Rs.3200 for the bar attendant.
2) On 31st December 2014, there were:
a) Insurance paid in advance –Rs.180
b) Bar expenses owing Rs.60.
c) Subscriptions for 2015 unpaid Rs.300
d) Subscriptions for 2016 paid in advance Rs.150.
e) Creditors for bar purchases -Rs.2,100.
3) The bar stock on 31st December 2015, was valued at Rs.1,800.
e) Furniture and equipment are to be depreciated by 10%.
You are required to prepare:
(a) A bar Trading account showing the profit on the bar for the year
(b) the Income and Expenditure Account for the year ended 31st December 2015 and
(c) the balance sheet as of that date.
The solution of Question 49 Chapter 1 of +2 Part-1: –
| Bar Trading Account For the year ending 31st December 2015 |
|||||
| Particulars |
Amount | Particulars |
Amount | ||
| To opening stock | 3,920 | By bar takings | 32,800 | ||
| To purchase: cash | 27,800 | By closing stock | 1,800 | ||
| Add: credit purchases | 2,100 | ||||
| Less: paid for 2014 | 3,800 | 26,100 | |||
| To bar expenses | 650 | ||||
| Add: owing | 60 | ||||
| Less: paid for 2014 | 120 | 590 | |||
| To bar wages | 3,200 | ||||
| To bar profit c/d | 790 | ||||
| 34,600 | 34,600 | ||||
| Income and Expenditure account For the year ending 31st December 2015 |
|||||
| Expenditure |
Amount | Income |
Amount | ||
| To rates | 300 | By bar profit b/d | 790 | ||
| To insurance | 600 | By subscriptions | 13,600 | ||
| Add: paid in 2014 | 140 | Add: outstanding | 300 | ||
| Less: prepaid | 180 | 560 | Add: received in 2014 | 230 | |
| To wages | 14,200 | Less: received for 2014 | 400 | ||
| Less: bar wages | 3,200 | 11,000 | Less: Received for 2016 | 150 | 13,580 |
| To printing and stationary | 300 | By locker rent | 460 | ||
| To depreciation on F/E (7500 X 10% ) | 750 | ||||
| To excess of income over expenditure (surplus) | 1,220 | ||||
| 14,830 | 14,830 | ||||
| Balance Sheet As on 31st December 2015 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Accumulated Fund: | 25,600 | Cash in hand | 6,100 | ||
| Add: Surplus | 1,220 | 24,380 | Club House | 14,000 | |
| Subscriptions received in advance | 150 | Furniture and equipment | 7,500 | ||
| Creditors for expenses | 60 | Less: depreciation | 750 | 6,750 | |
| Creditors for bar purchases | 2,100 | Bar stock | 1,800 | ||
| Subscriptions in arrears | 300 | ||||
| Insurance in advance | 180 | ||||
| 29,130 | 29,130 | ||||
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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
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