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

Question 50 Chapter 1 of +2- Part-

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 upkeep of grounds   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   8,000
-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 on 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
           
           
    15,090     15,090

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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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