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Question 50 Chapter 1 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 50 Chapter 1 of +2- Part-
Q-50 - CH-1 - Usha +2 Book 2018 - Solution

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Question 50 Chapter 1 of +2-Part-1

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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.PaymentsRs. 
To balance b/d7,600By sports equipment purchased on 1.10.201630,000
To subscriptions: By postage and stationary700
20152,000By salaries and wages5,000
201637,000By upkeep of grounds1,000
20173,000By electricity charges2,300
To admission fees4,000By tournament expenses8,000
To locker rent 1,000By balance c/d8,800
To interest on Govt Securities1,200  
 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
AmountIncome
Amount
To postage and stationary 700By subscriptions37,000 
To salaries and wages 5,000Add: received in 20151,500 
To upkeep of grounds 1,000Add: Outstanding for 20161,00039,500
To Electricity charges 2,300By locker rent 1,000
To tournament expenses 8,000By interest on securities1,200 
To depreciation:  Add: accrued4001,600
-Sports equipment @15%     
-On 40,000 for 1 year6,000    
-On 30,000 for 3 months1,1257,125   
– Furniture @ 7.5% 450   
To excess of income over expenditure 17,525   
  42,100  42,100
Balance Sheet As on 31st December 2016
Liabilities
AmountAssets
Amount
Capital Fund:  Cash in hand 8,800
-Opening Balance95,100 Sports equipment40,000 
Add: Surplus17,525 Add: Additions30,000 
Admission fees4,0001,16,625Less: Depreciation7,12562,875
Subscriptions received in advance 3,000Outstanding Subscriptions 1,000
   10% Govt securities 16,000
   Accrued interest 400
   Club grounds 25,000
   Furniture6,000 
   Less: Depreciation4505,550
  1,19,625  1,19,625

Working Notes:
1. Opening Capital Fund:

Balance Sheet As of 1st January 2016
Liabilities
AmountAssets
Amount
Subscriptions received in advance 1,500Sports equipment 40,000
Capital Fund (Balancing Figure) 95,100Cash 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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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