Question 53 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 53 Chapter 1 of +2-A

Question 53 Chapter 1 of +2-A

53. From the following particulars relating to the Ramakrishna Mission Charitable Hospital, 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 on 1st April 2018 71,300 By Medicines ​3,05,900
To Subscriptions 4,79,960 By Doctor’s Honorarium 90,000
To Donations 1,45,000 By Salaries 2,75,000
To Interest on Investment @7% for a full year 70,000 By Petty Expenses 4,610
To Proceeds from Charity Show 1,04,500 By Equipment 1,50,000
    By Expenses on Charity Show 7,500
    By Cash in Hand on 31st March 2018 37,750
  8,70,760   8,70,760

 

Additional Information:  As at 1st April 2018 As at 31st March 2019
       (₹) (₹)
Subscriptions Due       2,400      2,800
Subscriptions Received in Advance          640      1,000
Stock of Medicines      88,100    97,400
Estimated value of Equipment    2,12,000  3,16,000
Building (cost less depreciation)    4,00,000  3,80,000

 

The solution of Question 53 Chapter 1 of +2-A

Books of Rama Krishna Mission Charitable HospitalIncome and Expenditure Account
(for the year ended 31st March 2019)
Expenditure
Amount Income
Amount
To Medicine 3,05,900   By Subscriptions *1 4,79,960  
Add: Opening Stock 88,100   Add: O/s at the end 2,800  
Less: Closing Stock 97, 400 2,96,600  Adv. in the Beginning 640  
To Doctor’s Honorarium   90,000 Less: O/s in the Beginning 2,400  
To Salary   2,75,000 Adv. at the end 1,000 4,80,000
To Petty Expenses   4,610 By Donations   1,45,000
To Expenses on Charity Show   7,500 By Interest on Investments   70,000
To Depreciation on Equipment *2   46,000 By Proceeds from Charity Show   1,04,500
To Depreciation on Building*3   20,000      
           
By Deficit (Balancing Figure)   59,790      
    7,99,500     7,99,500

* Means: – see the working note for calculation

Balance Sheet (for the year ended 31st March 2018)
Liabilities
Amount Assets
Amount
Advanced Subscription 640 Subscription Due 2,400
Outstanding Rent 1,500 Stock of Medicines 88,100
    Equipment 2,12,000
    Building 4,00,000
    Cash in Hand 4,00,000
Capital Fund(Balancing Figure) 17,73,160 Investments *3 10,00,000
  17,73,800     17,73,800

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Advanced Subscription   1,000 Subscription Due   2,800
Capital Fund 17,73,160   Stock of Medicines   97,400
Add: Surplus 59,790 18,32,950 Equipment 2,12,000  
      Add: Purchases 1,50,000  
      Less: Depreciation *2 46,000 3,16,000
      Building 4,00,000 2,300
      Less: Depreciation *3 20,000 4,000
      7% Investments *4   10,00,000
      Cash in Hand   37,750
    18,33,950       18,33,950

* Means: – see the working note for calculation

Working Note: –

*1:- Calculation of Amount of Subscriptions

Subscription received During the year 47,996
Add: – Subscription outstanding at the end of the year 280
Subscription received in advance in the beginning of the year 64
  48,340
Less: – Subscription outstanding in the beginning of the year 240
Subscription received in advance at the end of the year 100
The amount for subscription credited to the Income and Expenditure A/c 48,000

*2:- Calculate Depreciation on Equipment
Depreciation = Opening Balance of Equipment + Equipment Purchased During the year – Closing Balance of Equipment
Opening Balance of Equipment = 2,12,000
Closing Balance of Equipment = 3,16,000
Equipment Purchased During the year = 1,50,000
= 2,12,000 + 1,50,000 – 3,16,000
Depreciation = 46,000

*3:- Calculate Depreciation on Building
Depreciation = Opening Balance of Building + Building Purchased During the year – Closing Balance of Building
Opening Balance of Building = 4,00,000
Closing Balance of Building = 3,80,000
Building Purchased During the year = 0
= 4,00,000 + 0 – 3,80,000
Depreciation = 20,000

*4:- Calculation of the amount of Investment X

 = amount of Interest  X 100
Rate of Interest

 

70,000 X 100
7

Total on Investment = 10,00,000/-

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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 53 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

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