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

Question 49 Chapter 1 of +2-Part-1

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The solution of Question 49 Chapter 1 of +2 Part-1: –

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

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

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%.

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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

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

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

The solution of Question 49 Chapter 1 of +2 Part-1: –

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

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

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