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

Question 49 Chapter 1 of +2- Part-

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 2015 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
Expenditure
Amount Income
Amount
To opening stock   3,920 By bar takings   32,800
To purchases: 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   750      
To excess of income over expenditure   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

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

 

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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