Question 50 Chapter 1 of +2-Part-1
50. (I & E A/c/ B/S) Youngmen’s Club prepared the following Receipts and Payments Account for the year ending 31st December 2016:
| RECEIPTS AND PAYMENTS ACCOUNT | |||
| Receipts | Rs. | Payments | Rs. |
| To balance b/d | 7,600 | By sports equipment purchased on 1.10.2016 | 30,000 |
| To subscriptions: | By postage and stationary | 700 | |
| 2015 | 2,000 | By salaries and wages | 5,000 |
| 2016 | 37,000 | By upkeep of grounds | 1,000 |
| 2017 | 3,000 | By electricity charges | 2,300 |
| To admission fees | 4,000 | By tournament expenses | 8,000 |
| To locker rent | 1,000 | By balance c/d | 8,800 |
| To interest on Govt Securities | 1,200 | ||
| 55,800 | 55,800 | ||
The fixed assets of the club on 1st January 2016 include the following:
Sports equipment Rs.40,000; Furniture Rs.6,000; 10% Government Securities Rs.16,000 and Club ground Rs.25,000.
Prepare the Income and Expenditure Account for the year ended 31st December 2015 and
the balance sheet as on that date after taking into account the following information:
a) Subscriptions for 2016 collected in 2015 were Rs.1,500;
b) Subscriptions for 2016 are outstanding- Rs.1,000.
c) Depreciation is to be provided at 15% p.a. on sports equipment and 7.5% p.a. on furniture.
The solution of Question 50 Chapter 1 of +2 Part-1: –
| Income and Expenditure account of Youngmen’s Club For the year ending 31st December 2016 |
|||||
| Expenditure |
Amount | Income |
Amount | ||
| To postage and stationary | 700 | By subscriptions | 37,000 | ||
| To salaries and wages | 5,000 | Add: received in 2015 | 1,500 | ||
| To upkeep of grounds | 1,000 | Add: Outstanding for 2016 | 1,000 | 39,500 | |
| To Electricity charges | 2,300 | By locker rent | 1,000 | ||
| To tournament expenses | 8,000 | By interest on securities | 1,200 | ||
| To depreciation: | Add: accrued | 400 | 1,600 | ||
| -Sports equipment @15% | |||||
| -On 40,000 for 1 year | 6,000 | ||||
| -On 30,000 for 3 months | 1,125 | 7,125 | |||
| – Furniture @ 7.5% | 450 | ||||
| To excess of income over expenditure | 17,525 | ||||
| 42,100 | 42,100 | ||||
| Balance Sheet As on 31st December 2016 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Capital Fund: | Cash in hand | 8,800 | |||
| -Opening Balance | 95,100 | Sports equipment | 40,000 | ||
| Add: Surplus | 17,525 | Add: Additions | 30,000 | ||
| Admission fees | 4,000 | 1,16,625 | Less: Depreciation | 7,125 | 62,875 |
| Subscriptions received in advance | 3,000 | Outstanding Subscriptions | 1,000 | ||
| 10% Govt securities | 16,000 | ||||
| Accrued interest | 400 | ||||
| Club grounds | 25,000 | ||||
| Furniture | 6,000 | ||||
| Less: Depreciation | 450 | 5,550 | |||
| 1,19,625 | 1,19,625 | ||||
Working Notes:
1. Opening Capital Fund:
| Balance Sheet As of 1st January 2016 |
|||||
| Liabilities |
Amount | Assets |
Amount | ||
| Subscriptions received in advance | 1,500 | Sports equipment | 40,000 | ||
| Capital Fund (Balancing Figure) | 95,100 | Cash in hand | 7,600 | ||
| Furniture | 6,000 | ||||
| Club grounds | 25,000 | ||||
| Outstanding Subscriptions | 2,000 | ||||
| 10% Govt securities | 16,000 | ||||
| 96,600 | 96,600 | ||||
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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
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