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Question 52 Chapter 1 of +2-A
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From the following information and Receipts and Payments Account of Delhi Medical Society, prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as at that date.
| RECEIPTS AND PAYMENTS ACCOUNT (for the year ended 31st March 2019) | |||
| Receipts | Rs. | Payments | Rs. |
| To Cash in Hand (Opening) | 2,600 | By Rent | 18,000 |
| To Entrance Fee | 3,200 | By Wages | 7,000 |
| To Donation for Building | 23,000 | By Billiard Table | 14,000 |
| To Locker Rent | 1,200 | By Furniture | 10,000 |
| To Life Membership Fee | 7,000 | By Interest | 2,000 |
| To Profit from Entertainment | 3,000 | By Postage | 1,000 |
| To Subscription | 40,000 | By Salary | 24,000 |
| By Cash in Hand (Closing) | 4,000 | ||
| 80,000 | 80,000 | ||
Prepare Income and Expenditure Account and Balance Sheet with the help of the following information:
Subscription outstanding on 31st March 2018 is ₹ 1,200 and ₹ 2,300 on 31st March 2019; opening stock of postage stamps is ₹ 300 and closing stock is ₹ 200; Rent ₹ 1,500 related to the year ended 31st March 2018 and ₹ 1,500 is still unpaid. On 1st April 2018, the club owned furniture ₹ 15,000, Furniture valued at ₹ 22,500 on 31st March 2019. The club has a loan of ₹ 20,000 (@ 10% p.a.) which was taken, in the year ended 31st March 2018.
The solution of Question 52 Chapter 1 of +2-A:
| Books of Shankar Sports Club Income and Expenditure Account (for the year ended 31st March 2019) | |||||
| Expenditure | Amount | Income | Amount | ||
| To Rent | 18,000 | By Subscriptions | 40,000 | ||
| To Wages | 7,000 | Add: O/s at the end | 2,300 | ||
| To Interest | 2,000 | Less: O/s in the Beginning | 1,200 | 41,100 | |
| To Postage Consumed *1 | 1,100 | By Entrance Fees | 3,200 | ||
| To Salary | 24,000 | By Locker Rent | 1,200 | ||
| To Depreciation on Furniture*2 | 2,500 | By Profit from Entertainment | 3,000 | ||
| By Deficit (Balancing Figure) | 6,100 | ||||
| 54,600 | 54,600 | ||||
* Means: – see the working note for calculation
| Balance Sheet (for the year ended 31st March 2018) | ||||
| Liabilities | Amount | Assets | Amount | |
| Loan @ 10% p.a. | 20,000 | Furniture | 15,000 | |
| Outstanding Rent | 1,500 | Postage | 300 | |
| Subscriptions Outstanding | 1,200 | |||
| Cash in Hand | 2,600 | |||
| Capital Fund (Balancing Figure) | 2,400 | |||
| 9,90,000 | 9,90,000 | |||
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| Balance Sheet (for the year ended 31st March 2019) | |||||
| Liabilities | Amount | Assets | Amount | ||
| Loan @10% p.a. | 20,000 | Capital Fund Deficit | 2,400 | ||
| Donation for Building | 23,000 | Add: – Deficit | 6,100 | 8,500 | |
| Outstanding Rent | 1,500 | Furniture | 22,500 | ||
| Life Membership Fees | 7,000 | Billiard Table | 14,000 | ||
| Postage | 200 | ||||
| Subscriptions Outstanding | 2,300 | ||||
| Cash in Hand | 4,000 | ||||
| 51,500 | 51,500 | ||||
* Means: – see the working note for calculation
Working Note: –
| *1:- Statement Showing Postage used during the year | |||
| Particulars | Details | Amount | |
| PostagePurchased during the year ended 31st March 2019 | 1,000 | ||
| Add: – Opening Stock of Postage | 300 | ||
| Closing Creditors for Postage | – | ||
| Cash Purchase of Postage | – | 300 | |
| Outstanding Advertisement Exp. | 1,300 | ||
| Less: – Closing Postage | 200 | ||
| Opening Creditors for Postage | – | ||
| Book Value of sale of Postage | – | 200 | |
| Amount of Postage used – debited to the Income and Expenditure A/c | 1,100 | ||
*2:- Calculate Depreciation on Furniture
Depreciation = Opening Balance of Furniture + Furniture Purchased During the year – Closing Balance of Furniture
Opening Balance of Furniture = 15,000
Closing Balance of Furniture = 22,500
Furniture Purchased During the year = 10,000
= 15,000 + 10,000 – 22,500
Depreciation = 2,500/-
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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