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Question 54 Chapter 1 of +2-A
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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 |
| Equipment | 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 Hospital Income 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 | By Interest on Investments | 70,000 | |||
| To Honorarium to Secretary | 1,20,000 | By Sundries Income | 4,000 | |||
| To Depreciation on Equipment *2 | 54,000 | |||||
| To Depreciation on Building*3 | 60,000 | |||||
| By Deficit (Balancing Figure) | 3,41,000 | |||||
| 7,99,500 | 7,99,500 | |||||
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* 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 |
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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)
- 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
