Question 49 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 49 Chapter 1 of +2- Part-
Q-49 - CH-1 - Usha +2 Book 2018 - Solution


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:

Accumulated fund25,600Clubhouse at cost14,000
Subscription in advance230Furniture and equipment7,500
Creditor for bar expenses120Bar stock3,920
Creditor for bar purchases3,800Subscriptions in arrears400
  Insurance in advance140
  Cash at bank3,790
 29,750 29,750

The summary of the club’s cash book for the year ended 31st December 2014, shows:

Balance b/f3,790Bar purchases27,800
Bar takings32,800Insurance600
Locker rents460Wages14,200
  Printing and stationary300
  Bar expenses650
  Balance c/f6,100
 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
To opening stock 3,920By bar takings 32,800
To purchase: cash27,800 By closing stock 1,800
Add: credit purchases2,100    
Less: paid for 20143,80026,100   
To bar expenses650    
Add: owing60    
Less: paid for 2014120590   
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
To rates 300By bar profit b/d 790
To insurance600 By subscriptions13,600 
Add: paid in 2014140 Add: outstanding300 
Less: prepaid180560Add: received in 2014230 
To wages14,200 Less: received for 2014400 
Less: bar wages3,20011,000Less: Received for 201615013,580
To printing and stationary 300By 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
Accumulated Fund:25,600 Cash in hand 6,100
Add: Surplus1,22024,380Club House 14,000
Subscriptions received in advance 150Furniture and equipment7,500 
Creditors for expenses 60Less: depreciation7506,750
Creditors for bar purchases 2,100Bar 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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution


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