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

Question 52 Chapter 1 of +2-A

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/-

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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)

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

 

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2 Book 1 min - Question 52 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms