Question 54 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 54 Chapter 1 of +2-A

Question 54 Chapter 1 of +2-A

54. Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended 31st March 2019:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March 2019
Receipts  Rs. Payments Rs.
To Cash in Hand 22,500 Salary 1,25,000
To Cash at Bank 50,000 By Stationery 17,000
To Subscriptions 8,17,500 By Electric Charges 95,500
To Donations 30,000 By Insurance 75,000
To Government Grant 1,50,000 By Equipment 3,00,000
To Sale of Newspapers 3,000 By Petty Expenses 5,000
To Proceeds of Charity Show 1,65,000 By Expenses on Charity Show      1,29,000
To Interest on Investments @ 10% for full-year 70,000 By Newspapers 10,000
To Sundries Income 4,000 By Lectures Fee 1,65,000
    By Honorarium to the secretary 1,20,000
    By Cash in Hand 20,500
    By Cash at Bank 2,50,000
       
  13,12,000   13,12,000

Additional Information:

Particulars 1st April 2018 31st March 2019
  (₹) (₹)
Outstanding Salaries       12,000      18,000
Insurance Prepaid         7,000       3,000
Subscription Outstanding       37,500     25,000
Subscription received in advance       17,500     10,000
Electricity Charges outstanding         …      12,500
Stock of Stationery       22,500       7,000
Equipments    2,56,000  5,02,000
Building   12,00,000 11,40,000

Prepare Income and Expenditure Account for the year ended 31st March, 2019,and Balance Sheet as on that date.

The solution of Question 54 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 Stationery   32,500 By Subscriptions *1 8,17,500  
To Electricity Charges 95,500   Add: O/s at the end 25,000  
Add: O/s at the end 12,500 1,08,000  Adv. in the Beginning 17,500  
To Salary 1,25,000   Less: O/s in the Beginning 37,500  
Add: O/s at the end 18,000   Adv. at the end 10,000 8,12,500
Less: O/s Beginning 12,000 1,31,000 By Donations   30,000
To Insurance 75,000   By Government Grant   1,50,000
Add: O/s at the end 7,000   By Sale of Old Newspapers   3,000
Less: O/s Beginning 3,000 79,000 By Income from Charity Show    
To Petty Expenses   5,000 Proceeds of Charity Show 1,65,000  
To Newspaper   10,000 Less: O/s in the Beginning 1,29,000 36,000
To Lectures Fees   1,65,000      
To Honorarium to Secretary   1,20,000 By Interest on Investments   70,000
To Depreciation on Equipment *2   54,000 By Sundries Income   4,000
To Depreciation on Building*3   60,000      
By Deficit (Balancing Figure)   3,41,000      
    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
Outstanding Salary 12,000 Prepaid Insurance 7,000
Subscription Received in Advance 17,500 Subscription Outstanding 37,500
    Stock of Stationery 22,500
    Equipment 2,56,000
    Building 12,00,000
Capital Fund(Balancing Figure) 22,66,000 Cash
22,500
    Bank 50,000
       
    10% Investments *4 7,00,000
       
  22,95,500     22,95,500

 

Balance Sheet (for the year ended 31st March 2019)
Liabilities
Amount Assets
Amount
Capital Fund 22,66,000 1,000 Prepaid Insurance   3,000
Add: Surplus 3,41,000 26,07,000 Subscription Outstanding   25,000
Outstanding Salary   18,000 Stock of Stationery   7,000
Subscription Received in Advance   10,000 Equipment 2,56,000  
Electricity Charges Outstanding   12,500 Add: Purchases 3,00,000 3,16,000
      Less: Depreciation *2 54,000 5,02,000
      Building 12,00,000  
      Less: Depreciation *3 60,000 11,40,000
      Cash   20,500
      Bank   2,50,000
      10% Investments *1   7,00,000
           
    26,47,500       26,47,500

* Means: – see the working note for calculation

Working Note: –

*1:- Calculation of Amount of Subscriptions

Subscription received During the year 8,17,500
Add: – Subscription outstanding at the end of the year 25,000
Subscription received in advance in the beginning of the year 17,500
  8,60,000
Less: – Subscription outstanding in the beginning of the year 37,500
Subscription received in advance at the end of the year 10,000
The amount for subscription credited to the Income and Expenditure A/c 8,12,500

*2:- Calculate Depreciation on Equipment
Depreciation = Opening Balance of Equipment + Equipment Purchased During the year – Closing Balance of Equipment
Opening Balance of Equipment = 2,56,000
Closing Balance of Equipment = 5,02,000
Equipment Purchased During the year = 3,00,000
= 2,56,000 + 3,00,000 – 5,02,000
Depreciation = 54,000


*3:- Calculate Depreciation on Building
Depreciation = Opening Balance of Building + Building Purchased During the year – Closing Balance of Building
Opening Balance of Building = 12,00,000
Closing Balance of Building = 11,40,000
Building Purchased During the year = 0
= 12,00,000 + 0 – 11,40,000
Depreciation = 60,000


*4:- Calculation of the amount of Investment X

 = amount of Interest  X 100
Rate of Interest

 

70,000 X 100
10

Total on Investment = 7,00,000/-

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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 54 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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