# Question 52 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 52 Chapter 1 of +2-A

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

 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/-

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –