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Page No 1.55:
Question 1:
From the information given below, prepare Receipts and Payments Account of Railway Club for the year ended 31st march, 2019:
(â¹) |
|
(â¹) |
||
Cash in Hand on 1st April, 2018 | 4,390 | Salaries | 21,500 | |
Subscription | 37,600 | Honorarium to Secretary | 2,500 | |
Donations | 8,000 | Interest Received on Investments | 2,950 | |
Entrance Fees | 4,300 | Printing and Stationery | 350 | |
Rent Received for Club Halls | 5,250 | Petty Cash Expenses | 900 | |
Electricity Charges | 3,440 | Insurance Premium Paid | 310 | |
Taxes paid | 490 |
Answer:
In the books of Railway Club |
|||||
Dr. |
Receipts and Payments A/c for the year ended 31st March, 2019 |
Cr. | |||
Receipts |
Amount (â¹) |
Payments |
Amount (â¹) |
||
To balance b/d |
4,390 |
By Electricity Charges |
3,440 |
||
To Subscriptions |
37,600 |
By Taxes Paid |
490 |
||
To Donations |
8,000 |
By Salaries |
21,500 |
||
To Entrance Fees |
4,300 |
By Honorarium to Secretary |
2,500 |
||
To Rent Received for Club Halls |
5,250 |
By Printing and Stationery |
350 |
||
To Interest Received on Investments |
2,950 |
By Petty Cash Expenses |
900 |
||
|
By Insurance Premium Paid |
310 |
|||
|
By balance c/d |
33,000 |
|||
|
|
||||
62,490 |
62,490 |
||||
Page No 1.55:
Question 2:
Bengal Cricket Club was inaugurated on 1st April, 2018. It had the following Receipts and Payments during the year ended 31st March, 2019:
Receipts: Entrance Fees â¹ 10,000; Subscriptions â¹ 60,000; Donations â¹ 10,000.
Payments: Rent â¹ 15,000; Postages â¹ 1,000; Newspapers and Magazines â¹ 8,000; Investments â¹ 30,000; Stationery â¹ 4,000; Entertainment Expenses â¹ 3,000; Miscellaneous Expenses â¹ 2,000.
Show the Receipts and Payments Account for the year ended 31st March, 2019.
Answer:
In the books of Bengal Cricket Club
|
|||||
Dr. |
Receipts and Payments A/c for the year ended 31st March, 2019
|
Cr. | |||
Receipts
|
Amount
(â¹)
|
Payments
|
Amount
(â¹)
|
||
To Entrance Fees |
10,000
|
By Rent |
15,000
|
||
To Subscriptions |
60,000
|
By Postages |
1,000
|
||
To Donations |
10,000
|
By Newspapers and Magazines |
8,000
|
||
|
By Investments |
30,000
|
|||
|
By Stationery |
4,000
|
|||
|
By Entertainment Expenses |
3,000
|
|||
|
By Miscellaneous Expenses |
2,000
|
|||
|
By balance c/d (as on 31st Mar, 2019) |
17,000
|
|||
|
|
||||
80,000
|
80,000
|
||||
Page No 1.56:
Question 3:
The following information were obtained from the books of Delhi Club as on 31st March, 2019 at the end of the first year of the Club, prepare Receipts and Payment Account for the year ending 31st March, 2019:
Receipts |
(â¹) |
Payments |
(â¹) |
|
Donation for Building and Library Room | 2,00,000 | Purchase of Land | 10,000 | |
Entrance Fees | 17,000 | Purchase of Furniture | 1,30,000 | |
Subscription | 19,000 | Salaries | 4,800 | |
Lockers Rent | 1,660 | Maintenance of Play Grounds | 1,000 | |
Refreshment Receipts | 16,000 | Rent | 8,000 | |
Government Grant | 25,000 | Refreshment Payments | 8,000 | |
Library Books | 25,000 | |||
Purchase of 90% Government Bonds | 1,60,000 | |||
Term Deposit with Bank | 15,000 |
Answer:
In the books of Delhi Club |
|||||
Dr. |
Receipts and Payments A/c for the year ended 31st March, 2019 |
Cr. | |||
Receipts |
Amount (â¹) |
Payments |
Amount (â¹) |
||
To Donation for Building and Library Room |
2,00,000 |
By Purchase of Land |
10,000 |
||
To Entrance Fees |
17,000 |
By Purchase of Furniture |
1,30,000 |
||
To Subscription |
19,000 |
By Salaries |
4,800 |
||
To Lockers Rent |
1,660 |
By Maintenance of Play Grounds |
1,000 |
||
To Refreshment Receipts |
16,000 |
By Rent |
8,000 |
||
To Government Grant |
25,000 |
By Refreshment Payments |
8,000 |
||
To balance c/d |
83,140 |
By Library Books |
25,000 |
||
|
By Purchase of 9% Government Bonds |
1,60,000 |
|||
|
By Term Deposit with Bank |
15,000 |
|||
|
|
||||
3,61,800 |
|
3,61,800 |
|||
|
|
|
Page No 1.56:
Question 4:
From the following information, prepare Receipts and Payments Account of Long-town Sports Club for the year ending 31st March, 2019:
Particulars |
(â¹) |
Particulars |
(â¹) |
|
Opening Balance: | Charity Given | 10,000 | ||
Cash in Hand | 50,000 | Match Expenses | 30,000 | |
Cash at bank | 60,000 | Salaries | 63,600 | |
Subscription Received: | Honorarium | 4,000 | ||
2017-18 | 4,000 | 12% Investment Purchased | 60,000 | |
2018-19 | 1,40,000 | Entrance Fees | 4,000 | |
2019-20 | 8,000 | Interest on 12% Investments | 6,000 | |
Furniture Purchased | 70,000 | Closing Balance: | ||
General Donations | 20,000 | Cash in Hand | 24,000 | |
Donations for Tournament | 40,000 | Cash at Bank | ? |
Answer:
In the books of Longtown Sports Club |
|||||
Dr. |
Receipts and Payments A/c for the year ended 31st March, 2019 |
Cr. | |||
Receipts |
Amount (â¹) |
Payments |
Amount (â¹) |
||
To Opening Balance: |
|
By Charity Given |
10,000 |
||
Cash in Hand |
50,000 |
By Match Expenses |
30,000 |
||
Cash at Bank |
60,000 |
By Salaries |
63,600 |
||
To Subscriptions Received: |
|
By Honorarium |
4,000 |
||
2017-18 |
4,000 |
By 12% Investment Purchased |
60,000 |
||
2018-19 |
1,40,000 |
By Furniture Purchased |
70,000 |
||
2019-20 |
8,000 |
By Closing Balance |
|
||
To Entrance Fees |
4,000 |
Cash in Hand |
24,000 |
||
To General Donations |
20,000 |
Cash at Bank (WN1) (Bal. Fig.) |
70,400 |
||
To Donations for Tournament |
40,000 |
|
|||
To Interest on 12% Investments |
6,000 |
|
|
||
|
|
|
|||
3,32,000 |
|
3,32,000 |
|||
|
|
|
Working Notes:
Calculation of closing balance of Cash:Total Receipts = â¹ 3,32,000
Total Payments = â¹ 2,37,600
Cash in Hand = â¹ 24,000
Cash at Bank | = | Total Receipts – (Total Payments + Closing Balance of Cash) |
= | â¹ [3,32,000 – 2,61,600] = â¹ 70,400 |
Page No 1.56:
Question 5:
From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2019:
(â¹) |
|
(â¹) |
||
Cash in Hand on 1stApril,2018 | 50,000 | Newspaper and Magazines | 87,000 | |
Cash at Bank on 1st April,2018 | 3,40,000 | Sale of Old Newspaper | 12,000 | |
Subscriptions Received | 15,70,000 | Books Purchased | 3,40,000 | |
Donations Received | 2,80,000 | Sports Materials Purchased | 4,70,000 | |
Investments purchased | 5,00,000 | Interest on Investments Received | 50,000 | |
Rent paid | 50,000 | Honorarium to coaches | 1,50,000 | |
General Expenses | 2,30,000 | Cash in Hand on 31st March,2019 | 30,000 | |
Postage and stationery | 25,000 | Cash at Bank on 31st March ,2019 | â? |
Answer:
Books of Evergreen Club |
|||||||
Receipts and Payments Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Receipts |
Amount (â¹) |
Payments |
Amount (â¹) |
||||
Balance b/d |
|
Investments Purchased |
5,00,000 |
||||
Cash in Hand |
50,000 |
|
Rent Paid |
50,000 |
|||
Cash at Bank |
3,40,000 |
3,90,000 |
General Expenses |
2,30,000 |
|||
Subscription Received |
15,70,000 |
Postage and Stationery |
25,000 |
||||
Donation Received |
2,80,000 |
Newspapers and Magazines |
87,000 |
||||
Sale of Old Newspapers |
12,000 |
Books Purchased |
3,40,000 |
||||
Interest on Investments Received |
50,000 |
Sports Material Purchased |
4,70,000 |
||||
|
|
Honorarium to Coacher |
1,50,000 |
||||
|
|
Balance c/d |
|
||||
|
|
Cash in Hand |
30000 |
|
|||
|
|
Cash at Bank (Balancing Figure) |
4,20000 |
4,50,000 |
|||
|
23,02,000 |
|
23,02,000 |
||||
|
|
|
|
Page No 1.57:
Question 6:
How are the following items shown in the accounts of a Not-for-Profit Organisation ?
â¹ | |
Tournament Fund | 50,000 |
Tournament Expenses | 15,000 |
Receipts from Tournament | 20,000 |
Answer:
Balance Sheet |
||||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Tournament Found |
50,000 |
|
|
|
Add: Tournament Receipts |
20,000 |
|
|
|
Less: Tournament Expenses |
(15,000) |
55,000 |
|
|
|
|
|
|
Page No 1.57:
Question 7:
How are the following dealt with in the accounts of a Not-for-Profit Organisation ?
Case I
|
Dr. (â¹)
|
Cr. (â¹) |
Case II
|
Dr. (â¹) | Cr. (â¹) |
Prize Fund Prizes Paid Match Expenses |
12,000
15,000 |
50,000 | Match Fund Match Expenses Investments of Match Fund Interest on Match Fund Investments Prizes Paid |
35,000 60,000 â 19,000 |
1,00,000 3,000 |
|
|
|
|
â
Answer:
Case 1
Balance Sheet |
||||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Prize Fund |
50,000 |
|
|
|
Less: Prize Paid |
(12,000) |
38,000 |
|
|
|
|
|
|
Note: Match Expenses of Rs 15,000 are not deductible from the Prize Fund. This is because the Prize Fund is maintained only to meet the expenses relating to the Prize. However, the match expenses (i.e. Rs 15,000) will be debited to the Income and Expenditure Account as there is no specific fund is maintained to meet such expenses.
Case 2
Balance Sheet |
||||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Match Fund |
1,00,000 |
|
Match Fund Investments |
60,000 |
Less: Match Expenses |
(35,000) |
|
|
|
Add: Interest on Match Fund Investments |
3,000 |
68,000 |
|
|
|
|
|
|
Note: Prizes paid worth Rs 19,000 are not deductible from the Match fund because the Match Fund. This is because Match Fund is maintained only to meet the expenses relating to the Match. However, the prizes paid (i.e. Rs 19,000) will be debited to the Income and Expenditure Account as there is no specific fund is maintained for distributing the prizes. Also, the interest on Match Fund Investments is added to the Match Fund because it is an income related to this particular fund.
Page No 1.57:
Question 8:
How are the following dealt with while preparing the final accounts of a club?
Particulars
|
Dr.
(â¹) |
Cr. (â¹) |
Match Fund | ...... | 80,000 |
Match Fund Investments | 72,000 | .... |
Match Fund Bank Balance | 3,500 | .... |
Interest on Match Fund Investments | ..... | 2,880 |
Match Expenses |
5,500
|
....
|
Answer:
Balance Sheet |
||||
as at 31st March, 2019 | ||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
Match Fund |
80,000 |
|
Match Fund Investment |
72,000 |
Add: Interest on Match Fund Investment |
2,880 |
|
Match Fund Bank Balance |
3,500 |
Less: Match Expenses |
(5,500) |
77,380 |
|
|
|
|
|
|
Page No 1.57:
Question 9:
From the following information of a club show the amounts of match expenses and match fund in the appropriate Financial Statements of the club for the year ended on 31st March, 2019:
Particulars
|
â¹
|
Match expenses paid during the year ended 31st March, 2019 | 1,02,000 |
Match Fund as on 31st March, 2019 | 24,000 |
Donation for Match Fund (Received during the year ended 31st March, 2019) | 40,000 |
Proceeds from the sale of match tickets (Received during the year ended 31st March, 2019) | 15,000 |
|
|
Answer:
Balance Sheet |
||||
as at 31st March, 2019 | ||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
Match Fund |
24,000 |
|
|
|
Add: Donation for Match Fund |
40,000 |
|
|
|
Add: Proceed from Sale of Tickets |
15,000 |
|
|
|
Less: Match Expenses (Note) |
(79,000) |
NIL |
|
|
|
|
|
|
|
|
|
|
|
Income and Expenditure Account |
|||||
Dr. |
for the year ended 31st March, 2019 |
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Match Expenses (Note) |
23,000 |
|
|
||
|
|
|
|
||
Note: The total Match expenses amounts to Rs 1,02,000 whereas the total amount available in the Match Fund is only Rs 79,000 (i.e. Rs 24,000 + Rs 40,000 +Rs 15,000). This implies that expenses of Rs 79,000 is met through the Fund while the remaining expenses of Rs 23,000 (i.e. Rs 1,02,000 – Rs 79,000) are debited to the Income and Expenditure Account.
Page No 1.57:
Question 10:
Show how are the following items dealt with while preparing the final accounts for the year ended 31st March, 2019 of a Not-for-profit Organisation:
Case I
Expenditure on construction of Pavilion is â¹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 is â¹ 20,00,000.
Case II
Expenditure on construction of Pavilion is â¹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is â¹ 10,00,000 and Capital Fund as at 31st March, 2018 is â¹ 20,00,000.
Case III
Expenditure on construction of Pavilion is â¹ 6,00,000. The construction work is in progress and has not yet completed. Pavilion Fund as at 31st March, 2018 is â¹ 10,00,000, and Capital Fund as at 31st March, 2018 is â¹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is â¹ 5,00,000.
Answer:
Case 1
Balance Sheet as on March 31, 2019 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Capital Fund |
20,00,000 |
Pavilion Work-in-Progress |
6,00,000 |
|
|
|
|
Case 2
Balance Sheet as on March 31, 2019 |
||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
Pavilion Fund |
10,00,000 |
|
Pavilion Work-in-Progress |
6,00,000 |
Less: Expenditure on Construction of Pavilion |
(6,00,000) |
4,00,000 |
|
|
Capital Fund |
20,00,000 |
|
|
|
Add: Pavilion Work-in-Progress |
6,00,000 |
26,00,000 |
|
|
|
|
|
|
|
Case 3
Balance Sheet as on March 31, 2019 |
||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
Pavilion Fund |
10,00,000 |
|
|
|
Add: Donation |
5,00,000 |
|
Pavilion Work-in-Progress |
6,00,000 |
Less: Expenditure on Construction of Pavilion |
(6,00,000) |
9,00,000 |
|
|
Capital Fund |
20,00,000 |
|
|
|
Add: Pavilion Work-in-Progress |
6,00,000 |
26,00,000 |
|
|
|
|
|
|
Page No 1.58:
Question 11:
How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?
Case I During the year ended 31st March, 2019, Entrance Fees received was â¹ 1,00,000.
Case II During the year ended 31st March, 2019, Entrance Fees received was â¹ 1,00,000.Out of this, â¹ 25,000 was received from individuals whose membership is not yet approved.
Answer:
Case 1
Income and Expenditure Account
for the year ended March 31, 2019
|
|||||
Dr.
|
|
Cr. |
|||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount
(â¹)
|
||
|
|
Entrance Fees
|
1,00,000
|
||
|
|
|
|
Case 2
Income and Expenditure Account for the year ended March 31, 2019 |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
|
|
Entrance Fees |
75,000 |
||
|
|
(1,00,000 – 25,000) |
|
Page No 1.58:
Question 12:
In the year ended 31st March, 2019, subscriptions received by the Jaipur Literary Society were â¹ 4,20,000. These subscriptions include â¹ 14,000 received for the year ended 31st March, 2018. On 31st March, 2019, subscriptions due but not received were â¹ 10,000. What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2019 as subscription?
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
|
|
Subscription |
4,20,000 |
|
||
|
|
Less: Outstanding for 2017-18 |
14,000 |
|
||
|
|
Add: Outstanding for 218-19 |
10,000 |
4,16,000 |
||
|
|
|
|
Page No 1.58:
Question 13:
Subscriptions received during the year ended 31st March , 2019 are: | â¹ | â¹ |
For the year ended 31st March, 2018 | 1,600 | |
For the year ended 31st March, 2019 | 84,400 | |
For the year ended 31st March, 2020 | 3,200 | 89,200 |
There are 450 members, each paying an annual subscription of â¹ 200; â¹ 1,800 were in arrears for the year ended 31st March, 2018.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
|
|
Subscription |
|
||
|
|
(450 Members × Rs 200 each) |
90,000 |
||
|
|
|
|
Page No 1.58:
Question 14:
In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were â¹ 4,09,000 including â¹ 5,000 for the year ended 31st March, 2018 and â¹ 10,000 for the year ended 31st March, 2020. At the end of the year ended 31st March, 2019, subscriptions outstanding for the year ended 31st March, 2019 were â¹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 were â¹ 8,000, while subscriptions received in advance on the same date were â¹ 18,000.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.
Answer:
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscription received during the year 2018-19 |
4,09,000 |
Add: Outstanding for 2018-19 (Current year) |
15,000 |
Less: Received for 2017-18 (Previous year) |
(5,000) |
Add: Advance received in 2017-18 (Previous year) |
18,000 |
Less: Advance received for 2019-20 (Next year) |
10,000) |
Subscription to be credited to Income and Expenditure Account |
4,27,000 |
|
|
Page No 1.58:
Question 15:
From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:
â¹ | ||
1st April, 2018 | Subscriptions in Arrears | 50,000 |
Subscriptions Received in Advance | 30,000 | |
31st March, 2019 | Subscriptions in Arrears | 25,000 |
Subscriptions Received in Advance | 70,000 |
Subscriptions received during the year ended 31st March, 2019 – â¹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – â¹ 10,000.
Answer:
Particulars |
Amount (â¹) |
Subscription received during the year 2018-19 |
3,00,000 |
Less: Subscription-in-Arrears for 2017-18 |
50,000 |
Add: Subscription-in-Arrears for 2018-19 |
25,000 |
Add: Subscription-in Advance for 2018-19 |
30,000 |
Less: Subscription-in Advance for 2019-20 |
70,000 |
Subscription to be Credited to Income and Expenditure Account |
2,35,000 |
|
Page No 1.59:
Question 16:
Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2019 for each of the following cases:
Particulars | â¹ | |
Case I. |
(i) Subscriptions collected during the year ended 31st March, 2019
(ii) Subscriptions in arrears for the year ended 31st March, 2019
(iii) Subscriptions received in advance for the year ended 31st March, 2020 |
2,50,000 6,000 5,000 |
Case II. | (i) Subscriptions collected during the year ended 31st March, 2019 (ii) Subscriptions for the year ended 31st March, 2019 collected in the year ended 31st March, 2018 (iii) Subscriptions unpaid for the year ended 31st March, 2019 |
49,000 3,000 2,000 |
Case III. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019 |
25,000 3,000 5,000 |
Case IV. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019 (iv) Subscriptions received in advance for the year ended 31st March, 2020 |
80,000 5,000 8,000 2,000 |
Case V. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2018 (iii) Subscriptions received in advance on 31st March, 2018 (iv) Subscriptions received in advance on 31st March, 2019 (v) Subscriptions not yet collected for the year ended 31st March, 2019 |
90,000
5,000 3,000 4,000 6,000
|
Answer:
Case 1
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions collected during the year 2018-19 |
2,50,000 |
Add: Subscriptions-in-arrears for the year 2018-19 |
6,000 |
Less: Subscriptions received in advance for the year 2019-20 |
(5,000) |
Subscriptions Income for the year 2018-19 |
2,51,000 |
|
|
Case 2
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions collected during the year 2018-19 |
49,000 |
Add: Subscriptions collected for 2018-19 in 2017-18 |
3,000 |
Add: Subscriptions unpaid for the year 2018-19 |
2,000 |
Subscriptions Income for the year 2018-19 |
54,000 |
|
|
Case 3
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions received during the year 2018-19 |
25,000 |
Less: Subscriptions outstanding in the beginning of 2018-19 |
(3,000) |
Add: Subscriptions yet not collected for 2018-19 |
5,000 |
Subscriptions Income for the year 2018-19 |
27,000 |
|
|
Case 4
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions received during the year 2018-19 |
80,000 |
Less: Subscriptions outstanding in the beginning of 2018-19 |
(5,000) |
Add: Subscriptions yet not collected for 2018-19 |
8,000 |
Less: Subscriptions for 2019-20 received in advance |
(2,000) |
Subscriptions Income for the year 2018-19 |
81,000 |
|
|
Case 5
Statement of Subscription for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions received during the year 2018-19 |
90,000 |
Less: Subscriptions outstanding at the end of 2017-18 |
(5,000) |
Add: Subscriptions received in advance on Mar. 31, 2018 |
3,000 |
Less: Subscriptions received in advance on Mar. 31, 2019 |
(4,000) |
Add: Subscriptions not yet collected for 2018-19 |
6,000 |
Subscriptions Income for the year 2018-19 |
90,000 |
|
|
Page No 1.59:
Question 17:
From the following particulars, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:
â¹ | ||
(a) | Subscriptions in arrears on 31st March, 2018 | 500 |
(b) | Subscriptions received in advance on 31st March, 2018 for the year ended on 31st March, 2019 | 1,100 |
(c) | Total Subscriptions received during the year ended 31st March, 2019 (including â¹ 400 for the year ended 31st March, 2018, â¹ 1,200 for the year ended 31st March, 2020 and â¹ 300 for the year ended 31st March, 2021) | 35,400 |
(d) | Subscriptions outstanding for year ended 31st March, 2019 | 400 |
Answer:
Statement of Subscriptions for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Subscriptions received during 2018-19 |
35,400 |
Less: Subscriptions-in-arrears received for 2017-18 |
(400) |
Less: Subscriptions received-in-advance for 2019-20 |
(1,200) |
Less: Subscriptions received-in-advance for 2017-18 |
(300) |
Add: Subscriptions Outstanding for 2018-19 |
400 |
Add: Subscriptions received in 2017-18 for 2018-19 |
1,100 |
Subscriptions to be credited to Income and Expenditure Account |
35,000 |
|
|
Page No 1.59:
Question 18:
How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 2019?
â¹ | |
Subscriptions received during the year ended 31st March, 2019 | 3,58,500 |
Subscriptions outstanding on 31st March, 2018 | 30,000 |
Subscriptions received in Advance on 31st March,2018 | 22,500 |
Subscriptions received in Advance on 31st March, 2019 | 13,500 |
Subscriptions outstanding on 31st March, 2019 | 37,500 |
(including ââ¹ 12,500 for the year ended 31st March, 2018)
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|||
|
|
Subscriptions |
3,58,500 |
|
||
|
|
Add: Outstanding at the end |
37,500 |
|
||
|
|
Add: Advance in the beginning |
22,500 |
|
||
|
|
Less: Outstanding in the beginning |
30,000 |
|
||
|
|
Less: Advance at the end |
13,500 |
3,75,000 |
||
|
|
|
|
|||
Balance Sheet as on March 31, 2018 |
|||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
Subscription received in Advance |
22,500 |
Subscriptions Outstanding |
30,000 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
Subscription received in Advance |
13,500 |
Subscriptions Outstanding |
37,500 |
|
|
|
|
Page No 1.60:
Question 19:
From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019:
A club has 200 members each paying an annual subscription of â¹ 1,000. The Receipts and Payments Account for the year showed a sum of â¹ 2,05,000 received as subscriptions. The following additional information is provided :
â¹ | |
Subscriptions Outstanding on 31st March, 2018 | 30,000 |
Subscriptions Received in Advance on 31st March, 2019 | 40,000 |
Subscriptions Received in Advance on 31st March, 2018 | 14,000 |
Answer:
Subscriptions Account |
|||||
Dr. |
for the year ended 31st March, 2019 |
Cr. |
|||
Particulars |
Amount (â¹) |
Particulars |
Amount (â¹) |
||
Income and Expenditure (200 members × Rs 100 each) |
2,00,000 |
Bank (Subscriptions Received) |
2,05,000 |
||
Outstanding Subscriptions in the beginning |
30,000 |
Advance Subscriptions in the beginning |
14,000 |
||
Advance Subscriptions at the end |
40,000 |
Outstanding Subscriptions at the end (Balancing Figure) |
51,000 |
||
2,70,000 |
2,70,000 |
||||
Page No 1.60:
Question 20:
From the following information, prepare Subscription Account for the year ending 31st March, 2019:
Particulars
|
31st March, 2018
(â¹) |
31st March, 2019 (â¹) |
Subscription in Arrears | 20,000 | 18,000 |
Subscription in Advance
|
13,000
|
11,000
|
In the year ending 31st March, 2019, subscription received were â¹ 2,10,000 (including â¹ 6,000 of arrears from previous year) and subscription arrears of previous year were written off â¹ 4,000.
Answer:
Dr. |
Subscriptions A/c |
Cr. |
||||
Date |
Particulars |
Amount (â¹) |
Date |
Particulars |
Amount (â¹) |
|
2018 |
|
2018 |
|
|||
April 01 |
To Outstanding Subscriptions A/c |
20,000 |
April 01 | By Subscriptions Received in Advance A/c |
13,000 |
|
2019 |
|
2019 |
|
|||
March 31 |
To Subscriptions Received in Advance A/c |
11,000 |
March 31 | By Subscriptions written off (Inc. & Exp. A/c) |
4,000 |
|
March 31 |
To Income & Expenditure A/c (Bal. Fig.) |
2,14,000 |
March 31 | By Bank A/c |
2,10,000 |
|
|
|
March 31 | By Outstanding Subscriptions A/c |
18,000 |
||
|
|
|||||
2,45,000 |
2,45,000 |
|||||
|
|
Page No 1.60:
Question 21:
On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2019:
Particulars
|
1st April, 2018
(â¹) |
31st March, 2019 (â¹) |
Stock of Medicines | 1,75,750 | 1,44,650 |
Creditors for Medicines
|
15,06,900
|
18,20,700
|
Medicines purchased during the year ended 31st March, 2019 were âââ¹ 60,80,700.
Answer:
Statement of Medicine Consumed during the year ended 31st March, 2019 |
|
Particulars |
Amount (â¹) |
Medicine Purchased during the year 2018-19 |
60,80,700 |
Add: Stock in the beginning (as on April 01, 2018) |
1,75,750 |
Less: Stock at the end (as on March 31, 2019) |
(1,44,650) |
Medicine to be debited to Income and Expenditure Account |
61,11,800 |
|
|
Page No 1.60:
Question 22:
Calculate amount of medicines consumed during the year ended 31st March, 2019: | â¹ |
Opening Stock of Medicines | 1,00,000 |
Opening Creditors for Medicines | 90,000 |
Cash purchases of Medicines during the year | 3,00,000 |
Closing Stock of Medicines | 1,50,000 |
Closing Creditors for Medicines | 1,30,000 |
Answer:
Statement of Medicines Consumed for the year ending March 31, 2019 |
|
Particulars |
Amount Rs |
Cash Purchases of medicines during the year |
3,00,000 |
Add: Opening Stock of Medicines |
1,00,000 |
Less: Closing Stock of Medicines |
1,50,000 |
Add: Closing Creditors of Medicines |
1,30,000 |
Less: Opening Creditors of Medicines |
90,000 |
Amount of Medicines Consumed during the year 2018-19 |
2,90,000 |
|
|
Page No 1.60:
Question 23:
Calculate amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2019:
(i) | Amount paid for stationery during the year ended 31st March, 2019 – â¹5,400; Stock of Stationery in Hand on 31st March, 2019 – â¹ 250. | |
(ii) | Stock of Stationery in Hand on 1st April, 2018 – â¹ 1,500; Payment made for Stationery during the year ended 31st March, 2019 – â¹ 5,400; Stock of Stationery in Hand on 31st March, 2019 – â¹ 250. | |
â¹ | ||
(iii) | Stock of Stationery on 1st April, 2018 | 1,500 |
Creditors for Stationery on 1st April, 2018 | 1,000 | |
Amount paid for Stationery during the year | 5,400 | |
Stock of Stationery on 31st March, 2019 | 250 |
Answer:
(a)
Statement of Stationery Consumed at the end of March 31, 2019 |
|
Particulars |
Amount (â¹) |
Amount paid for Stationery during the year ended 31st March, 2019 |
5,400 |
Less: Closing Stock (as on March 31, 2019) |
250 |
Amount of Stationery to be posted to Income and Expenditure Account |
5,150 |
|
|
(b)
Statement of Stationery Consumed at the end of March 31, 2019 |
|
Particulars |
Amount (â¹) |
Payment made for Stationery during the year ended 31st March, 2019 |
5,400 |
Add: Opening Stock (as on April 01, 2018) |
1,500 |
Less: Closing stock (as on March 31, 2019) |
250 |
Amount of Stationery to be posted to Income and Expenditure Account |
6,650 |
|
|
(c)
Statement of Stationery Consumed at the end of March 31, 2019 |
|
Particulars |
Amount (â¹) |
Amount paid for Stationery during the year ended 31st March, 2019 |
5,400 |
Add: Opening Stock (as on April 01, 2018) |
1,500 |
Less: Closing stock (as on March 31, 2019) |
250 |
Less: Creditors for Stationery in the beginning (April 01, 2018) |
1,000 |
Amount of Stationery to be posted to Income and Expenditure Account |
5,650 |
|
|
Page No 1.61:
Question 24:
On the basis of the following information, calculate amount that will appear against the term 'Stationery Used' in the Income and Expenditure Account for the year ended 31st March, 2019:
â¹ | |
Stock of Stationery as at 1st April, 2018 | 12,000 |
Creditors for Stationery as at 1st April, 2018 | 25,600 |
Amount paid for Stationery during the year ended 31st March, 2019 | 1,40,000 |
Stock of Stationery as at 31st March, 2019 | 23,200 |
Creditors for Stationery as at 31st March,2019 | 24,000 |
Answer:
Statement of Stationery Consumed for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Amount paid for Stationery during the year 2018-19 |
1,40,000 |
Add: Opening Stock (as on April 01, 2018) |
12,000 |
Less: Closing Stock (as on March 31, 2019) |
(23,200) |
Add: Creditors at the end (as on March 31, 2019) |
24,000 |
Less: Creditors in the beginning (as on April 01, 2018) |
(25,600) |
Amount of Stationery be shown in Income and Expenditure Account |
1,27,200 |
|
|
Page No 1.61:
Question 25:
Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2019:
â¹ | |
Stock of Stationery on 1st April, 2018 | 30,000 |
Creditors for Stationery on 1st April, 2018 | 20,000 |
Advances paid for Stationery carried forward from the year ended 31st March, 2018 | 2,000 |
Amount paid for Stationery during the year ended 31st March, 2019 | 1,08,000 |
Stock of Stationery on 31st March, 2019 | 5,000 |
Creditors for Stationery on 31st March, 2019 | 13,000 |
Advance paid for Stationery on 31st March, 2018 | 3,000 |
Answer:
Statement of Stationery for the year ended Mar. 31, 2019 |
|
Particulars |
Amount (â¹) |
Amount paid for Stationery during the year 2018-19 |
1,08,000 |
Add: Opening Stock (as on Apr. 01, 2018) |
30,000 |
Less: Closing stock (as on Mar. 31, 2019) |
5,000 |
Less: Creditors in the beginning (as on Apr. 01, 2018) |
20,000 |
Add: Creditors at the end (as on Mar. 31, 2019) |
13,000 |
Add: Advance in the beginning (as on Apr. 01, 2018) |
2,000 |
Less: Advance at the end (as on Mar. 31, 2019) |
3,000 |
Amount to be posted to Income and Expenditure Account |
1,25,000 |
|
|
Page No 1.61:
Question 26:
Calculate the amount of sports material to be transferred to income and Expenditure Account of Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018:
Particulars | (â¹) | ||
(i) | Sports material sold during the year (Book Value â¹ 50,000) | 56,000 | |
(ii) | Amount paid to creditors for sports materials | 91,000 | |
(iii) | Cash purchase of sports material | 40,000 | |
(iv) | Sports material as on 31st March, 2017 | 50,000 | |
(v) | Sports material as on 31st March, 2018 | 55,000 | |
(vi) | Creditors for sports material as on 31st March, 2017 | 37,000 | |
(vii) | Creditors for sports material as on 31st March, 2018 | 45,000 | |
Answer:
Calculation of Amount of Sports Material Consumed to be debited to Income & Expenditure A/c | |
Particulars |
Amount |
Amount Paid to the creditors of Sports Materials |
91,000 |
Less: Creditors of the sports material as on 31st March, 2017 |
37,000 |
Closing Stock of Sports Material as on 31st March, 2018 |
55,000 |
Sports Material sold during the year |
50,000 |
Add: Creditors of the sports material as on 31st March, 2018 |
45,000 |
Cash purchase of Sports Material |
40,000 |
Opening Stock of Sports Material as on 31st March, 2017 |
50,000 |
Sports Material consumed during the year to be debited to Income & Expenditure A/c |
84,000 |
|
Page No 1.61:
Question 27:
How are the following dealt with while preparing the final accounts for the year ended 31st , 2019?
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) for the year ended 31st March, 2019 |
||||
Dr. | Cr. | |||
Receipts | â¹ | Payments | â¹ | |
|
By Payments for Sports Material | 1,40,000 | ||
BALANCE SHEET (AN EXTRACT) as at 1st April, 2018 |
||||
Liabilities
|
â¹ |
Assets |
â¹ | |
|
||||
Creditors for Sports Materials | 6,000 | Sports Materials | 8,000 | |
Additional information :
Sports Materials in Hand on 31st March, 2019 – â¹ 22,000.
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
Sports Material |
1,40,000 |
|
|
|
||
Add: Opening Stock |
8,000 |
|
|
|
||
Less: Closing Stock |
(22,000) |
|
|
|
||
Less: Creditors in the beginning |
(6,000) |
1,20,000 |
|
|
||
|
|
|
|
|||
Balance Sheet as on March 31, 2019 |
|||
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
|
Stock of Sport Materials |
22,000 |
|
|
|
|
Alternatively, Sports Material consumed can also be calculated as.
Creditors for Sports Material Account |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Bank A/c |
1,40,000 |
Balance b/d (Creditors in the beginning) |
6,000 |
||
(Amount paid for sports materials) |
|
Purchases A/c (Balancing Figure) |
1,34,000 |
||
|
|
|
|||
|
1,40,000 |
|
1,40,000 |
||
|
|
|
|
||
Sports Material Consumed = Opening Stock + Purchases – Closing Stock = 8,000 + 1,34,000 – 22,000 = Rs 1,20,000
Page No 1.61:
Question 28:
âHow are the following dealt with while preparing the final accounts for the year ended 31st March, 2019?
RECEIPTS AND PAYMENTS ACCOUNT (AN EXTRACT) |
||||
Dr. |
|
Cr. | ||
Receipts | â¹ |
Payments |
â¹ | |
|
âBy Payments for Medicines | 1,50,000 | ||
|
|
Additional information :
As at 1st April, 2018 (â¹) |
As at 31st March, 2019 (â¹) |
|
Stock of Medicines | 50,000 | 75,000 |
Creditors for Medicines | 40,000 | 60,000 |
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
Medicine |
1,50,000 |
|
|
|
||
Add: Opening Stock |
50,000 |
|
|
|
||
Less: Closing Stock |
(75,000) |
|
|
|
||
Less: Creditors in the beginning |
(40,000) |
|
|
|
||
Add: Creditors at the end |
60,000 |
1,45,000 |
|
|
||
|
|
|
|
|||
Balance Sheet as on March 31, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Medicines |
40,000 |
Stock of Medicines |
50,000 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Medicines |
60,000 |
Stock of Medicines |
75,000 |
|
|
|
|
Page No 1.62:
Question 29:
âHow are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?
Dr. | Cr. | |||
Receipts
|
â¹ | Payments | â¹ | |
To Sale of Sports Materials | 26,000 | âBy Creditors for Sports Materials | 61,000 | |
(Book value â¹ 20,000) | By Cash purchase of Sports Materials | 10,000 | ||
Additional information :
As at 31st March, 2018 (â¹) |
As at 31st March, 2019 (â¹) |
|
Sports Materials | 20,000 | 25,000 |
Creditors for Sports Materials | 7,000 | 15,000 |
Answer:
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
Payment for Sports Material |
71,000 |
|
Profit on Sale of Sports Material (26,000 – 20,000) |
6,000 |
||
Add: Opening Stock |
20,000 |
|
|
|
||
Less: Closing Stock |
(25,000) |
|
|
|
||
Less: Creditors in the beginning |
(7,000) |
|
|
|
||
Add: Creditors at the end |
15,000 |
|
|
|
||
Less: Book Value of Material Sold |
(20,000) |
54,000 |
|
|
||
|
|
|
|
|||
Balance Sheet as on March 31, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Sport Materials |
7,000 |
Stock of Sport Materials |
20,000 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Sport Materials |
15,000 |
Stock of Sport Materials |
25,000 |
|
|
|
|
Page No 1.62:
Question 30:
From the following information of a Not-for-Profit Organisation, show the 'Sports Materials' item in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 31st March, 2019:
Particulars |
31st March, 2018 |
31st March, 2019 ââ¹ |
|
Stocks of Sports Materials |
6,200 |
4,800 | |
Creditors for Sports Materials | 9,800 | 7,200 | |
Advance to Suppliers for Sports Materials | 11,000 | 19,000 |
Payment to suppliers for Sports Materials during the year was ââ¹ 1,02,000. There were no cash purchases made.
Answer:
Extract of Income and Expenditure Account for the year ended March 31, 2019 |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Sports Material Consumed |
92,800 |
|
|
||
|
|
|
|
||
Balance Sheet as on March 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Sports Materials |
9,800 |
Stock of Sports Materials |
6,200 |
|
|
Advance paid for Sports Materials |
11,000 |
|
|
|
|
Balance Sheet as on March 2019 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Creditors for Sports Materials |
7,200 |
Stock of Spors Materials |
4,800 |
|
|
Advance paid for Sports Materials |
19,000 |
|
|
|
|
Working Note:
Calculation of Sports Material Consumed
Particulars |
Amount (â¹) |
Sports Material |
1,02,000 |
Add: Opening Stock |
6,200 |
Less: Closing Stock |
(4,800) |
Less: Creditors in the beginning |
(9,800) |
Add: Creditors at the end |
7,200 |
Less: Advance at the end |
(19,000) |
Add: Advance in the beginning |
11,000 |
|
92,800 |
|
|
Alternatively, Sports Material consumed can also be calculated as.
Creditors for Sports Material Account |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Balance b/d (Advance in the beginning) |
11,000 |
Balance b/d (Creditors in the beginning) |
9,800 |
||
Bank A/c (Amount paid for stationery) |
1,02,000 |
Purchases A/c (Balancing Figure) |
91,400 |
||
Balance c/d (Creditors at the end) |
7,200 |
Balance c/d (Advance at the end) |
19,000 |
||
|
1,20,200 |
|
1,20,200 |
||
|
|
|
|
||
Sports Material Consumed = Opening Stock + Purchases – Closing Stock = 6,200 + 91,400 – 4,800 = Rs 92,800
Page No 1.62:
Question 31:
The book value of furniture on 1st April, 2018 is â¹ 60,000. Half of this furniture is sold for â¹ 20,000 on 30th September, 2018. Depreciation is to be charged on furniture @ 10% p.a.
Calculate loss on sale of furniture. Show how the loss on sale and depreciation on furniture will be shown in the Income and Expenditure Account for the year ended 31st March, 2019.
Answer:
Furniture Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
Amount (â¹) |
Date |
Particulars |
Amount (â¹) |
||
2018 |
|
|
2018 |
|
|
||
April 01 |
Balance b/d |
|
Sept.30 |
Depreciation (i) (for 6 Months) |
1.500 |
||
|
(i) 30,000 |
|
Sept.30 |
Bank (Sale) (i) |
20,000 |
||
|
(ii) 30,000 |
60,000 |
Sept.30 |
Income and Expenditure (Loss on Sale) |
8,500 |
||
2019 | |||||||
|
|
|
March 31 |
Depreciation (ii) (for whole year) |
3,000 |
||
|
|
|
|
Balance c/d (ii) (30,000 – 3,000) |
27,000 |
||
|
|
60,000 |
|
|
60,000 |
||
|
|
|
|
|
|
||
Income and Expenditure Account for the year ended March 31, 2019 |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Depreciation on Furniture |
|
|
|
||
(1,500 + 3,000) |
4,500 |
|
|
||
Loss on Sale of Furniture |
8,500 |
|
|
||
|
|
|
|
||
Working Note:
Calculation of Profit or Loss on Sale of Furniture
Particulars |
Amount (â¹) |
Book Value of Furniture Sold as on April 01, 2018 |
30,000 |
Less: Depreciation (for 6 Months) (3,000 × 10% × 6/12) |
1,500 |
Book Value of Furniture as on Sept. 30, 2018 |
28,500 |
Less: Sale Value |
20,000 |
Loss on Sale of Furniture |
8,500 |
Page No 1.63:
Question 32:
Delhi Youth Club has furniture at a value of â¹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of â¹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing â¹ 1,50,000 was also purchased on 1st October, 2018.
Prepare Furniture Account for the year ended 31st March, 2019.
Answer:
Furniture Account |
|||||||
Dr. |
|
Cr. |
|||||
Date |
Particulars |
Amount (â¹) |
Date |
Particulars |
Amount (â¹) |
||
2018 |
|
|
2018 |
|
|
||
Apr. 01 |
Balance b/d |
|
Dec. 31 |
Depreciation (ii) (for 9 Months) |
1,500 |
||
|
(i) 2,00,000 |
|
Dec. 31 |
Bank (Sale (ii)) |
14,800 |
||
|
(ii) 20,000 |
2,20,000 |
Dec. 31 |
Income and Expenditure (Loss on Sale) |
3,700 |
||
Oct. 01 |
Bank (iii) |
1,50,000 |
2019 |
|
|
||
|
|
|
Mar. 31 |
Depreciation |
|
||
|
|
|
|
(i) 20,000 |
|
||
|
|
|
|
(iii) 7,500 (for 6 Months) |
27,500 |
||
|
|
|
Mar. 31 |
Balance c/d |
|
||
|
|
|
|
(i) 1,80,000 |
|
||
|
|
|
|
(iii) 1,42,500 |
3,22,500 |
||
|
|
3,70,000 |
|
|
3,70,000 |
||
|
|
|
|
|
|
||
Working Note:
Calculation of Profit or Loss on Sale of Furniture
Particulars |
Amount (â¹) |
Book Value of Furniture (i) as on April 01, 2018 |
20,000 |
Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12] |
(1,500) |
Book Value on December 31, 2018 |
18,500 |
Less: Loss on Sale of Furniture (18,500 × 20%) |
(3,700) |
Sale Value of Furniture |
14,800 |
Page No 1.63:
Question 33:
In the year ended 31st March, 2019, salaries paid amounted to â¹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March, 2019 from the following additional information:
â¹ | |
Prepaid Salaries on 31st March, 2018 | 24,000 |
Prepaid Salaries on 31st March, 2019 | 12,000 |
Outstanding Salaries on 31st March, 2018 | 18,000 |
Outstanding Salaries on 31st March, 2019 | 15,000 |
Answer:
Statement of Salaries for the year ended March 31, 2019 |
|
Particulars |
Amount (â¹) |
Amount paid for Salaries |
2,04,000 |
Add: Prepaid Salaries as on March 31, 2018 |
24,000 |
Less: Prepaid Salaries as on March 31, 2019 |
(12,000) |
Less: Outstanding Salaries as on March 31, 2018 |
(18,000) |
Add: Outstanding Salaries as on March 31, 2019 |
15,000 |
Salaries chargeable to Income and Expenditure Account |
2,13,000 |
|
|
Page No 1.63:
Question 34:
How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2019?
1st April, 2018 | 31st March, 2019 | |
Outstanding Locker Rent | â¹ 4,600 | â¹ 6,300 |
Advance Locker Rent | â¹ 3,000 | â¹ 4,000 |
Locker Rent received during the year ended 31st March, 2019 – â¹ 52,000.
Answer:
Income and Expenditure Account |
||||||
Dr. |
for the year ended 31st March, 2019 |
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
|
|
Locker Rent Received |
52,000 |
|
||
|
|
Add: Outstanding at the end |
6,300 |
|
||
|
|
Add: Advance in the beginning |
3,000 |
|
||
|
|
Less: Outstanding in the beginning |
4,600 |
|
||
|
|
Less: Advance at the end |
4,000 |
52,700 |
||
|
|
|
|
Page No 1.63:
Question 35:
Prepare Income and Expenditure Account for the year ended 31st March, 2019 from the following:
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019
|
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balanceb/d (cash) | 1,80,000 |
By Salaries |
4,80,000â | ||
To Subscriptions | 9,00,000 | By Rent | 50,000 | ||
To Sale of Investments | 2,00,000 | By Stationery | 20,000 | ||
To Sale of Old Furniture (Book Value â¹ 40,000) | 30,000 | By Defence Bonds | 3,00,000 | ||
To Donations | 10,000 | By Furniture | 2,00,000 | ||
By Bicycles | 30,000 | ||||
By Balance c/d (Cash) | 2,40,000 | ||||
13,20,000 |
13,20,000 | ||||
Answer:
Income and Expenditure Account |
|||||
Dr. |
for the year ended 31st March, 2019 |
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Salaries |
4,80,000 |
Subscriptions |
9,00,000 |
||
Rent |
50,000 |
Donation |
10,000 |
||
Stationery |
20,000 |
|
|
||
Loss on Sale of Old Furniture |
10,000 |
|
|
||
Surplus (Balancing Figure) |
3,50,000 |
|
|
||
|
9,10,000 |
|
9,10,000 |
||
|
|
|
|
Page No 1.63:
Question 36:
Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balance b/d (Cash at Bank) | 2,01,000 |
By Salaries of Nurses |
65,600 | ||
1,11,500 | 38,000 | ||||
27,000 | 20,000 | ||||
1,00,000 | 2,00,000 | ||||
1,56,000 | 84,000 | ||||
3,800 | 67,000 | ||||
1,24,700 | |||||
5,99,300 |
5,99,300 | ||||
Donation of â¹ 10,000 received for Building Fund was wrongly included in the Subscriptions Account. A bill of medicines purchased during the year amounted to ââ¹12,800 was outstanding. Government Grant is not for a specific purpose.
Answer:
Book of Delhi Nursing Society Income and Expenditure Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
Salaries of Nurses |
65,600 |
Subscriptions |
11,1500 |
|
|||
Board, Laundry and Domestic Help |
38,000 |
Less: Donation for Building |
(10000) |
1,01,500 |
|||
Rent Rates and Taxes |
20,000 |
Fees from Non-members |
27,000 |
||||
Expenses of Car |
84,000 |
Municipal Grant |
1,00,000 |
||||
Drugs and Incidental Expenses |
67,000 |
|
Interest |
3,800 |
|||
Add: Outstanding Expenses |
12,800 |
79,800 |
Deficit (Balancing Figure) |
55,100 |
|||
|
2,87,400 |
|
2,87,400 |
||||
|
|
|
|
Page No 1.64:
Question 37:
Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balance b/d (cash) | 1,50,000 | By Salaries and Wages | 1,60,000 | ||
To Subscriptions | By Office Expenses | 35,000 | |||
2016-2017 | 60,000 | By Sports Equipments | 3,40,000 | ||
2018-2019 | 3,50,000 | By Telephone Charges | 24,000 | ||
To Donations | 50,000 | By Electricity Charges | 32,000 | ||
To Entrance Fees | 80,000 | By Travelling Expenses | 65,000 | ||
By Balance c/d (Cash) | 34,000 | ||||
6,90,000 | 6,90,000 | ||||
Additional information :
(a) Outstanding Subscriptions for the year ended 31st March, 2019 – â¹ 55,000.
(b) Outstanding Salaries and Wages – â¹ 40,000.
(c) Depreciate Sports Equipments by 25%.
Prepare Income and Expenditure Account of the Club from the above particulars.
Answer:
Books of You Bee Forty Club |
|||||||
Income and Expenditure Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
Salaries and Wages |
1,60,000 |
|
Subscriptions |
3,50,000 |
|
||
Add: Outstanding |
40,000 |
2,00,000 |
Add: Outstanding for 2018-19 |
55,000 |
4,05,000 |
||
Office Expenses |
35,000 |
Donations |
50,000 |
||||
Telephone Charges |
24,000 |
Entrance Fees |
80,000 |
||||
Electricity Charges |
32,000 |
|
|
||||
Travelling Expenses |
65,000 |
|
|
||||
Depreciation on Sports Equipments (34,0000 × 25%) |
85,000 |
|
|
||||
Surplus (Balancing Figure) |
94,000 |
|
|
||||
|
5,35,000 |
|
5,35,000 |
||||
|
|
|
|
Page No 1.64:
Question 38:
From the following Receipts and Payments Account of Jaipur Sports Club, prepare Income and Expenditure Account for the year ended 31st March, 2019:
|
Answer:
Working Notes: Calculation of Interest Accrued on investment
|
Page No 1.65:
Question 39:
Following is the information given in respect of certain items of a Sports Club. Show these items in the Income and Expenditure Account and the Balance Sheet of the Club as at 31st March, 2019:
Particulars | â¹ |
Sports Fund as on 1st April, 2018 | 3,50,000 |
Sports Fund Investments | 3,50,000 |
Interest on Sports Fund Investments | 40,000 |
Donations for Sports Fund | 1,50,000 |
Sports Prizes awarded | 1,00,000 |
Expenses on Sports Events | 40,000 |
General Fund | 8,00,000 |
General Fund Investments | 8,00,000 |
Interest on General Fund Investments | 80,000 |
Answer:
In the books of …. Sports Club
|
|||||
Dr. |
Income and Expenditure A/c for the year ended 31st March, 2019
|
Cr. | |||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount
(â¹)
|
||
|
By Interest on General Fund Investments |
80,000
|
Note: General Fund will be shown on the liabilities side and general fund investments will be shown on the asset side of the balance sheet as on 31st March, 2019.
Working Notes:
1)
Calculation of Sports Fund Balance
|
Amount
(â¹)
|
Sports Fund as on 1st April 2018 |
3,50,000
|
Add: Donations for Sports Fund |
1,50,000
|
Interest on Sports Fund Investment |
40,000
|
Less: Sports Prizes Awarded |
1,00,000
|
Expenses on Sports Fund |
40,000
|
Balance of Sports Fund to be shown on the Liabilities side of the Balance Sheet as at 31st March, 2019 |
4,00,000
|
|
Page No 1.65:
Question 40:
Prepare Income and Expenditure Account from the following particulars of Youth Club for the year ended on 31st March, 2018:
RECEIPTS AND PAYMENTS ACCOUNT |
|||||
Dr. |
|
Cr. |
|||
Receipts |
â¹ |
Payments |
â¹ |
||
To Balance b/d (Cash) | 32,500 | By Salaries | 31,500 | ||
To Subscription: | By Postage | 1,250 | |||
2016-17
|
1,500 | By Rent | 9,000 | ||
2017-18
|
60,000 | By Printing and Stationery | 14,000 | ||
2018-19
|
1,800 | 63,300 | By Sports Material | 11,500 | |
To Donations (Billiards Table) | 90,000 | Bu Miscellaneous Expenses | 3,100 | ||
To Entrance Fees | 1,100 | By Furniture (1st October, 2017) | 20,000 | ||
To Sale of Old Magazines | 450 | By 10% Investment (1st October, 2017) | 70,000 | ||
By Balance c/d (31st March, 2018) | 27,000 | ||||
1,87,350 | 1,87,350 | ||||
Additional Information:
(i) Subscription outstanding as at 31st March, 2018 â¹ 16,200.
(ii) â¹ 1,200 is still in arrears for the year 2016-17 for subscription.
(iii) Value of sports material at the beginning and at the end of the year was â¹ 3,000 and â¹ 4,500 respectively.
(iv) Depreciation to be provided @ 10% p.a. on furniture.
Answer:
In the books of Youth Club |
||||||
Dr. |
Income and Expenditure A/c for the year ended 31st March, 2018 |
Cr. | ||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
To Salaries |
31,500 |
By Subscriptions |
60,000 |
|
||
To Postage |
1,250 |
Add: Outstanding Subscriptions |
15,000 |
75,000 |
||
To Rent |
9,000 |
(16,200 – 1,200) |
|
|
||
To Printing and Stationery |
14,000 |
By Entrance fees |
1,100 |
|||
To Sports Material Consumed (WN1) |
10,000 |
By Sale of Old Magazines |
450 |
|||
To Miscellaneous Expenses |
3,100 |
By Interest Accrued on Investments |
3,500 |
|||
To Depreciation on Furniture (20,000 × 10/100 × 6/12) |
1,000 |
(70,000 × 10/100 × 6/12) |
|
|||
To Surplus- Excess of Income over Expenditure |
10,200 |
|
||||
|
|
|||||
80,050 |
80,050 |
|||||
|
|
|
Note: If nothing is mentioned, Entrance fee is to be treated as a revenue receipt. Working Notes: 1)
Sports Material Consumed | = | Opening Stock + Purchases – Closing Stock |
= | â¹ (3,000 + 11,500 – 4,500) = â¹ 10,000 |
Page No 1.66:
Question 41:
Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balance b/d (Cash) | 18,000 | âBy Building | 4,00,000 | ||
To Donations for Building | 4,50,000 | By Project Expenses | 90,000 | ||
To Donations | 50,000 | (Young Talent Search and Development) | |||
To Government Grant | 1,00,000 | By Match Expenses | 90,000 | ||
(Young Talent Search and Development) | By Furniture | 1,21,000 | |||
To Life Membership Fees | 40,000 | By 10% Investments | 1,60,000 | ||
To Match Fund | 80,000 | (Purchased on 1st July, 2018) | |||
To Subscriptions | 52,000 | By Salaries | 70,000 | ||
To Locker Rent | 4,000 | By Insurance | 3,500 | ||
To Interest on Investments | 10,000 | By Sundry Expenses | 4,700 | ||
To Sale of Furniture | 1,00,000 | By Closing c/d (Cash) | 4,800 | ||
(Book value â¹ 80,000) | By Bank (Young Talent | 10,000 | |||
To Entrance Fees | 50,000 | Search and Development | |||
9,54,000
|
9,54,000 | ||||
Additional Information:
(i) During the year ended 31st March, 2019, the club had 550 members and each paying an annual subscription of â¹ 100.
(ii) Salaries Outstanding as at 1st April, 2018 were â¹ 10,000 and as at 31st March, 2019 were â¹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March, 2019.
Answer:
Books of Delhi Football Club |
|||||||
Income and Expenditure Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
Salaries |
70,000 |
|
Subscriptions (550 members × Rs 100 each) |
55,000 |
|||
Add: Outstanding at the end |
5,000 |
|
Entrance Fees |
50,000 |
|||
Less: Outstanding in the beginning |
(10,000) |
65,000 |
|
|
|||
Insurance |
3,500 |
Donations |
50,000 |
||||
Sundry Expenses |
4,700 |
Locker Rent |
4,000 |
||||
|
|
|
|
||||
Match Expenses |
90,000 |
|
Profit on Sale of Furniture (1,00,000 - 80,000) |
20,000 |
|||
Less: Match Fund |
(80,000) |
10,000 |
Interest on Investment |
10,000 |
|
||
Surplus (Balancing Figure) |
1,07,800 |
Add: Accrued Interest |
2,000 |
12,000 |
|||
|
1,91,000 |
|
1,91,000 |
||||
|
|
|
|
||||
Working Notes:
Calculation of Interest Accrued on Investment
Interest on Investment for 9 Months (1,60,000 × 10% × 9/12) |
12,000 |
Less: Interest Received |
(10,000) |
Accrued Interest on Investment |
2,000 |
Page No 1.66:
Question 42:
Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
||||||
Dr. | Cr. | |||||
Receipts
|
â¹ | Payments | â¹ | |||
To Balance b/d | By Rent | 16,800 | ||||
Cash in Hand
|
10,000 | By Wages | 24,500 | |||
Cash at Bank
|
21,900 | 31,900 | By Electricity Charges | 7,200 | ||
To Entrance Fees | 25,500 | By Honorarium | 43,500 | |||
To Subscriptions | 1,60,000 | By Books | 21,300 | |||
To Donations | 16,500 | By Office Expenses | 45,000 | |||
To Life Membership Fees | 25,000 | By 3% Fixed Deposit | 80,000 | |||
To Profit on Entertainment | 5,600 | (1st October, 2018) | ||||
By Balance c/d: | 24,200 | |||||
By Balance c/d | 2,000 | |||||
Cash in Hand | 2,000 | |||||
Cash at Bank | 24,200 | 26,200 | ||||
2,64,500 |
2,64,500 | |||||
In the beginning of the year, the club possessed Books of ââ¹ 2,00,000 and Furniture of â¹ 85,000. Subscriptions in arrears in the beginning of the year amounted to â¹ 3,500 and at the end of the year â¹ 4,500 and six months Rent was due both in the beginning of the year and at the end of the year.
âPrepare Income and Expenditure Account of the club for the year ended 31st March, 2019 and its Balance Sheet as at that date after writing off â¹ 5,000 and â¹ 11,300 on Furniture and books respectively.
Answer:
Books of Royal Club |
|||||||
Income and Expenditure Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
Cr. |
|||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
Rent |
16,800 |
|
Entrance Fees |
25,500 |
|||
Less: Outstanding Rent in the beginning (WN1) |
8,400 |
|
Subscriptions |
1,60,000 |
|
||
Add: Outstanding Rent at the end |
8,400 |
16,800 |
Less: Outstanding in the beginning |
3,500 |
|
||
Wages |
24,500 |
Add: Outstanding at the end |
4,500 |
1,61,000 |
|||
Lighting Charge |
7,200 |
Donations |
16,500 |
||||
Lecturer’s Fee |
43,500 |
Profit on Entertainment |
5,600 |
||||
Office Expenses |
45,000 |
Interest Accrued on Fixed Deposits |
1,200 |
||||
Depreciation on: |
|
(80,000 × 3% × 6/12) |
|
||||
Books |
11,300 |
|
|
|
|||
Furniture |
5,000 |
16,300 |
|
|
|||
Surplus (Balancing Figure) |
56,500 |
|
|
||||
|
2,09,800 |
|
2,09,800 |
||||
|
|
|
|
||||
Working Notes:
1)
Balance Sheet as on April 01, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Outstanding Rent |
8,400 |
Books |
2,00,000 |
Capital Fund (Balancing Figure) |
3,12,000 |
Furniture |
85,000 |
|
|
Subscriptions Outstanding |
3,500 |
|
|
Cash and Bank |
31,900 |
|
3,20,400 |
|
3,20,400 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
||
Outstanding Rent |
8,400 |
Subscriptions Outstanding |
4,500 |
||
Capital Fund |
3,12,000 |
|
Books |
2,00,000 |
|
Add: Life Membership Fees |
25,000 |
|
Add: Purchases |
21,300 |
|
Add: Surplus |
56,500 |
3,93,500 |
Less: Deprecation |
11,300 |
2,10,000 |
|
|
Furniture |
85,000 |
|
|
|
|
Less: Depreciation |
5,000 |
80,000 |
|
|
|
Fixed Deposits |
80,000 |
|
|
|
|
Add: Accrued interest |
1,200 |
81,200 |
|
|
|
Cash at Bank |
24,200 |
||
|
|
Cash in Hand |
2,000 |
||
|
4,01,900 |
|
4,01,900 |
||
|
|
|
|
Page No 1.67:
Question 43:
From the following Receipts and Payments Account of Social Club and the information supplied, 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 |
|||||
Dr. |
|
|
Cr. |
||
Receipts |
(â¹) |
Payments |
(â¹) |
||
To Balance b/d | 7,000 | By Salaries | 28,000 | ||
To Subscriptions: |
|
|
By General Expenses |
6,000 |
|
2017-18
|
5,000 | By Electricity Charges | 4,000 | ||
2018-19
|
20,000 | By Books | 10,000 | ||
2019-20
|
4,000 |
29,000
|
By Newspapers |
8,000 |
|
To Hire of Ground |
14,000
|
By Balance c/d |
4,000 |
||
To Surplus from Entertainment Events |
8,000
|
||||
To Sale of Old Newspapers |
2,000
|
|
|||
60,000
|
60,000
|
||||
|
|
(a) The club has 50 members each paying an annual subscription of â¹ 500. Subscriptions Outstanding on 31st March,2018 were â¹ 6,000.
(b) On 31st March, 2019, Salaries Outstanding amounted to â¹ 2,000. Salaries paid in the year ended 31st March, 2019 included â¹ 6,000 for the year ended 31st March, 2018.
(c) On 1st April, 2018, the club owned Building valued at â¹ 2,00,000; Furniture â¹ 20,000 and Books â¹ 20,000.
(d) Provide depreciation on Furniture at 10%.
Answer:
In the books of New City Club
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
Dr. |
|
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
Salaries |
28,000 |
|
Subscription (50 members × Rs 500 each) |
25,000 |
||
Add: Outstanding for 2018-19 |
2,000 |
|
Rent Received from the use of hall |
14,000 |
||
Less: Outstanding for 2017-18 |
6,000 |
24,000 |
Profit from Entertainment |
8,000 |
||
General Expenses |
6,000 |
Sale of Old Newspapers |
2,000 |
|||
Electricity Charges |
4,000 |
|
|
|||
Newspapers |
8,000 |
|
|
|||
Depreciation on Furniture (2,000 × 10%) |
2,000 |
|
|
|||
Surplus (Balancing Figure) |
5,000 |
|
|
|||
|
49,000 |
|
49,000 |
|||
|
|
|
|
|||
Balance Sheet as on April 01, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Salaries Outstanding |
6,000 |
Subscriptions Outstanding |
6,000 |
Capital Fund |
2,47,000 |
Building |
2,00,000 |
(Balancing Figure) |
|
Furniture |
20,000 |
|
|
Books |
20,000 |
|
|
Cash and Bank |
7,000 |
|
2,53,000 |
|
2,53,000 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
||
Advance Subscription |
4,000 |
Subscription Outstanding |
|
||
Salaries Outstanding |
2,000 |
For 2018-19 (25,000 - 20,000) |
5,000 |
|
|
Capital Fund |
2,47,000 |
|
For 2017-18 (6,000 - 5,000) |
1,000 |
6,000 |
Add: Surplus |
5,000 |
2,52,000 |
Building |
2,00,000 |
|
|
|
Furniture |
20,000 |
|
|
|
|
Less: 10% Depreciation |
2,000 |
18000 |
|
|
|
Books |
20,000 |
|
|
|
|
Add: Purchases |
10,000 |
30,000 |
|
|
|
Cash and Bank |
4,000 |
||
|
2,58,000 |
|
2,58,000 |
||
|
|
|
|
Page No 1.67:
Question 44:
From the following Receipts and Payments Account and additional information given below, prepare Income and Expenditure Account and Balance Sheet of Rural Literacy Society as on 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31 st March, 2019 |
|||||
Dr. |
|
|
Cr. |
||
Receipts |
Amount |
Payments |
Amount |
||
To Balance b/d: | By General Expenses | 32,000 | |||
Cash in Hand
|
40,000 | By Newspaper | 18,500 | ||
Cash at Bank
|
1,55,500 | By Electricity | 30,000 | ||
To Subscriptions: |
|
|
By Fixed Deposit with Bank |
1,80,000 |
|
2017-18
|
12,000 | (On 30th September, 2018 @ 10% p.a.) | |||
2018-19
|
2,65,000 | By Books | 70,000 | ||
2019-20
|
5,000 |
2,82,000
|
By Salary |
36,000 |
|
To Legacy |
12,500
|
By Rent |
65,000 |
||
To Government Grant |
1,20,000
|
By Postage Charges |
3,000 |
||
To Sale of Old Furniture |
37,000
|
By Furniture (purchased) |
1,05,000 |
||
(Book value â¹ 50,000) | By Balance c/d: | ||||
To Interest received on Fixed Deposit |
4,500
|
Cash in Hand
|
30,000 |
||
Cash at Bank
|
82,000 | ||||
6,51,500
|
6,51,500
|
||||
|
|
Additional information:
(i) Subscription outstanding as on 31st March, 2018 â¹ 20,000 and on 31st March, 2019 â¹ 15,000.
(ii) On 31st March, 2019, salary outstanding â¹ 6,000 and one month rent paid in advance.
(iii) On 1st April, 2018, society owned furniture â¹ 1,20,000 and books â¹ 50,000.
Answer:
Income and Expenditure Account
for the year ending March 31, 2019
|
|||||
Dr. |
|
Cr.
|
|||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount (â¹)
|
||
General Expenses |
32,000
|
Subscriptions |
2,65,000
|
|
|
Newspaper |
18,500
|
Add: Current O/s |
7,000
|
2,72,000
|
|
Electricity |
30,000
|
Legacy |
12,500
|
||
Salary |
36,000
|
|
Government Grant |
1,20,000
|
|
Add: Outstanding |
6,000
|
42,000
|
Interest on Fixed Deposit |
9,000
|
|
Rent |
65,000
|
|
(18,000 @ 10% for 6 months) |
|
|
Less: Prepaid |
5,000
|
60,000
|
|
||
Postage Charges |
3,000
|
|
|||
Loss on Sale of Furniture |
13,000
|
|
|||
Surplus |
2,15,000
|
|
|||
4,13,500
|
4,13,500 | ||||
|
|
Balance Sheet
as on March 31, 2019
|
|||||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount (â¹)
|
||
Capital Fund |
|
Books |
50,000
|
||
Opening Balance |
3,85,500
|
|
Add: Purchases |
70,000
|
1,20,000
|
Add: Surplus |
2,15,000
|
6,00,500
|
Prepaid Rent |
5,000
|
|
Salary Outstanding |
6,000
|
Furniture |
1,20,000
|
|
|
Subscription Received in Advance |
5,000
|
Add: Purchases |
1,05,000
|
|
|
|
Less: Sale |
50,000
|
1,75,000
|
||
|
Fixed Deposit |
1,80,000
|
|
||
|
Add: Accrued Interest |
4,500
|
1,84,500
|
||
|
Subscriptions Outstanding |
15,000
|
|||
|
Cash |
30,000
|
|||
|
Bank |
82,000
|
|||
|
6,11,500
|
6,11,500
|
|||
Working Notes
WN1: Ascertainment of Capital Fund
Balance Sheet
as on March 31, 2018
|
|||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount (â¹)
|
Capital Fund | 3,85,500 | Subscriptions Outstanding |
20,000
|
|
Books |
50,000
|
|
|
Furniture |
1,20,000
|
|
|
Cash |
40,000
|
|
|
|
Bank |
1,55,500
|
3,85,500
|
|
3,85,500
|
|
|
|
|
Page No 1.68:
Question 45:
Glaxo Club's Balance Sheet as at 1st April, 2018 was as under:
Liabilities |
(â¹) |
Assets |
(â¹) |
|
Capital Fund | 2,00,000 | Sports Equipments | 50,000 | |
Tournament Fund | 60,000 | Grounds | 1,20,000 | |
Subscriptions in Advance | 6,000 | Billiards Tables | 60,000 | |
Salaries Unpaid | 11,000 | Subscriptions Outstanding | 8,000 | |
Cash and Bank Balances | 39,000 | |||
2,77,000 | 2,77,000 | |||
|
|
|
|
Receipts and Payments Account for the year ended 31st March, 2019 was:
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019 |
|||||
Dr. |
|
|
Cr. |
||
Receipts |
(â¹) |
Payments |
(â¹) |
||
To Opening Balance | 39,000 | By Wages and Salaries | 60,000 | ||
To Subscriptions | 1,81,000 | By Upkeep of Grounds | 10,000 | ||
To Sale of Old Materials | 1,500 | By Stationery | 15,000 | ||
To Sale of Sports Equipment | 6,000 | By Audit Fee | 2,000 | ||
(Book value â¹ 10,000) | By Expenses on Tournament | 65,000 | |||
To Entrance Fees | 2,000 | By Sports Equipments | 20,000 | ||
To Life Membership Fees | 50,000 | By 5% Investments | 40,000 | ||
To Donations for Tournament | 20,000 | (On 1st October, 2018) | |||
By Cash and Bank Balances | 87,500 | ||||
2,99,500 | 2,99,500 | ||||
Subscriptions still to be received are â¹ 5,500 but subscriptions already received include â¹ 4,000 for next year. Salaries still unpaid are â¹ 6,000. Sports Equipments are now valued at â¹ 45,000. Prepare Income and Expenditure Account and the Balance Sheet, after charging 10% depreciation on Billiards Tables.
Answer:
In the books of Glaxo Club |
||||||
Dr. |
Income and Expenditure A/c for the year ended 31st March, 2019 |
Cr. | ||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
To Loss on Sale of Sports Equipment |
4,000 |
By Subscriptions |
1,81,000 |
|
||
To Sports Equipments used (WN1) |
15,000 |
Add: Advance Subscriptions (Prev. Year) |
6,000 |
|
||
To Wages and Salaries [60,000 – 5,000 (Prev. Year)] |
55,000 |
Less: Advance Subscriptions (Next Year) |
4,000 |
|
||
To Upkeep of Ground |
10,000 |
Subscriptions Received (Prev. Year) |
2,500 |
1,80,500 |
||
To Stationery |
15,000 |
By Sale of Old Materials |
1,500 |
|||
To Audit Fees |
2,000 |
By Entrance Fees |
2,000 |
|||
To Depreciation on Billiards Table (60,000 × 10/100) |
6,000 |
By Interest Accrued on 5% Investments |
1,000 |
|||
To Surplus- Excess of Income over Expenditure |
78,000 |
(40,000 × 5/100 × 6/12) |
|
|||
|
|
|||||
1,85,000 |
1,85,000 |
|||||
|
|
Note: If nothing is mentioned, Entrance fee is to be treated as a revenue receipt.
Working Notes:
Sports Material Consumed | = | Opening Stock + Purchases – Closing Stock - Sales |
= | â¹ (50,000 + 20,000 – 45,000 – 10,000) = â¹ 15,000 |
Balance Sheet of Glaxo Club |
|||||
as at 31st March, 2019 |
|||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
||
Capital Fund |
2,00,000 |
|
Sports Equipment |
45,000 |
|
Add: Life Membership fee |
50,000 |
|
Grounds |
1,20,000 |
|
Add: Surplus |
78,000 |
3,28,000 |
Billiards Table |
60,000 |
|
|
Less: Depreciation |
6,000 |
54,000 |
||
Tournament Fund |
60,000 |
|
|
||
Add: Donations |
20,000 |
|
5% Investments |
40,000 |
|
Less: Expenses on Tournament |
65,000 |
15,000 |
Accrued Interest on Investments |
1,000 |
|
|
Subscriptions Outstanding |
5,500 |
|||
Subscriptions Received in Advance |
4,000 |
Cash and Bank Balances |
87,500 |
||
Salaries Unpaid |
6,000 |
|
|||
|
|
||||
3,53,000 |
3,53,000 |
||||
Page No 1.68:
Question 46:
From the following Receipts and Payments Account and additional information relating to the star Cricket Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:
RECEIPTS AND PAYMENTS ACCOUNT
|
|||||
Dr. |
|
|
Cr. |
||
Receipts |
(â¹) |
Payments |
(â¹) |
||
To Balance b/d: | By Upkeep of Fields | 20,000 | |||
Cash in Hand 1st April, 2018
|
10,000 | By Tournament Expenses | 7,000 | ||
Cash at Bank as per Pass Book
|
20,000 | 30,000 | By Rates and Insurance | 2,000 | |
To Members' Subscriptions | 50,000 | By Telephone | 500 | ||
To Admission Fee | 3,000 | By Stationery | 1,000 | ||
To Sale of Old Bats, etc. | 500 | By General Charges | 500 | ||
To Hire of Ground | 3,000 | By Secretary's Honorarium | 2,000 | ||
To Subscriptions for Tournament | 10,000 | By Bats, Balls, etc. | 7,000 | ||
To Donations | 75,000 | By Balance c/d: | |||
To Legacy Donations | 25,000 |
Cash in Hand 31st March, 2019
|
1,00,000 | ||
Cash at Bank as per Pass Book
|
56,500 | 1,56,500 | |||
1,96,500 | 1,96,500 | ||||
Assets on 1st April, 2018: | â¹ | |
Stock of Bats and Balls | 15,000 | |
Stationery | 2,000 | |
Subscriptions Due | 5,000 |
Subscriptions due on 31st March, 2019 amounted to â¹ 7,500. Write off 50% of Bats, Balls (not considering sale) and 25% of Stationery.
Answer:
In the books of Star Cricket Club
|
||||||
Dr. |
Income and Expenditure A/c for the year ended 31st March, 2019
|
Cr.
|
||||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount
(â¹)
|
|||
To Upkeep of fields |
20,000
|
By Member’s Subscriptions |
50,000
|
|
||
To Rates and Insurance |
2,000
|
Add: Outstanding Subscriptions (7,500 – 5,000) |
2,500
|
52,500
|
||
To Telephone |
500
|
By Admission fee |
3,000
|
|||
To General Charges |
500
|
By Donations |
75,000
|
|||
To Secretary’s Honorarium |
2,000
|
By Legacy Donations |
25,000
|
|||
To Bats and Balls written off (WN1) |
11,000
|
By Hire of Ground |
3,000
|
|||
To Stationery written off (WN2) |
750
|
By Sale of Old bats, etc. |
500
|
|||
To Surplus- Excess of Income over Expenditure |
1,22,250
|
|
||||
|
|
|||||
1,59,000
|
1,59,000
|
|||||
|
|
Working Notes:
1)
Total Amount of Bats and Balls | = | Opening Stock + Purchases |
= | â¹ (15,000 + 7,000) = â¹ 22,000 | |
Bats and Balls to be written off | = | â¹ (22,000×50/100) = â¹ 11,000 |
Total Amount of Stationery | = | Opening Stock + Purchases |
= | â¹(2,000 + 1,000)= â¹3,000 | |
Stationery to be written off | = | â¹(3,000×25/100)= â¹750 |
3)
Balance Sheet of Star Cricket Club |
|||
as at 1st April, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Capital Fund (Balancing Figure) |
52,000 |
Bats and Balls |
15,000 |
|
Stationery |
2,000 |
|
|
Subscriptions due |
5,000 |
|
|
Cash in Hand |
10,000 |
|
|
Cash at Bank |
20,000 |
|
|
|
||
52,000 |
|
52,000 |
|
|
|
|
Balance Sheet of Star Cricket Club
|
||||||
as at 31st March, 2019
|
||||||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount
(â¹)
|
|||
Capital Fund (WN3) |
52,000
|
|
Stock of Bats and Balls |
15,000
|
|
|
Add: Surplus |
1,22,250
|
1,74,250
|
Add: Purchases |
7,000
|
|
|
|
Less: Written off |
11,000
|
11,000
|
|||
Subscriptions for Tournament |
10,000
|
|
|
|
||
Less: Tournament Expenses |
7,000
|
3,000
|
Stationery |
2,000
|
|
|
|
Add: Purchases |
1,000
|
|
|||
|
Less: Written off |
750
|
2,250
|
|||
|
|
|||||
|
Subscriptions Outstanding |
7,500
|
||||
|
Cash in Hand |
1,00,000
|
||||
|
Cash at Bank |
56,500
|
||||
|
|
|||||
1,77,250
|
1,77,250
|
|||||
|
|
Page No 1.69:
Question 47:
From the following Receipts and Payments Account of Mumbai Theatre Club, prepare Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date:
RECEIPTS AND PAYMENTS ACCOUNT
|
|||||
Dr. |
|
|
Cr. |
||
Receipts |
(â¹) |
Payments |
(â¹) |
||
To Balance b/d: | By Salary | 20,000 | |||
Cash and Bank
|
1,40,000 | By Repair Expenses | 5,000 | ||
To Donations | 50,000 | By Furniture | 60,000 | ||
To Subscriptions | 1,20,000 | By Miscellaneous Expenses | 5,000 | ||
To Entrance Fees | 10,000 | By Investments | 60,000 | ||
To Interest on Investments | 1,000 | By Insurance Premium | 2,000 | ||
To Interest Received from Bank | 4,000 | By Billiard Table | 80,000 | ||
To Sale of Old Newspapers | 1,500 | By Paper, lnk, etc. | 1,500 | ||
To Sale of Drama Tickets | 10,500 | By Drama Expenses | 5,000 | ||
By Balance c/d: | |||||
Cash and Bank | 98,500 | ||||
3,37,000 | 3,37,000 | ||||
Additional Information:
(i) Subscriptions in arrear for the year ended 31st March, 2019 â¹ 9,000 and subscriptions in advance for the year ending 31st March, 2020 â¹ 3,500.
(ii) Insurance Premium outstanding â¹ 400.
(iii) Miscellaneous expenses prepaid â¹ 900.
(iv) 8% interest has accrued on investment for five months.
(v) Billiard Table costing â¹ 3,00,000 was purchased during last year and â¹ 2,20,000 were paid for it.
Answer:
In the books of Mumbai Theatre Club |
|||||||
Dr. |
Income and Expenditure A/c for the year ended 31st March, 2019 |
Cr. |
|||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
To Salary |
20,000 |
By Donations |
50,000 |
||||
To Repair Expenses |
5,000 |
By Subscriptions |
1,20,000 |
|
|||
To Miscellaneous Expenses |
5,000 |
|
Add: Subscriptions Outstanding |
9,000 |
|
||
Less: Prepaid Expenses |
900 |
4,100 |
Less: Advance Subscriptions |
3,500 |
1,25,500 |
||
To Insurance Premium |
2,000 |
|
By Entrance Fees |
10,000 |
|||
Add: Outstanding Premium |
400 |
2,400 |
By Interest on Investments |
1,000 |
|
||
To Paper, Ink, etc. |
1,500 |
Add: Accrued Interest (WN1) |
2,000 |
3,000 |
|||
To Drama Expenses |
5,000 |
By Interest received from Bank |
4,000 |
||||
To Surplus- Excess of Income over Expenditure |
1,66,500 |
By Sale of Old Newspapers |
1,500 |
||||
|
By Sale of Drama Tickets |
10,500 |
|||||
|
|
||||||
2,04,500 |
2,04,500 |
||||||
|
|
Working Notes: 1)
Interest on Investments Accrued for 5 months | = | â¹ (60,000 × 8/100 × 5/12) |
= | â¹ 2,000 |
2)
Balance Sheet of Mumbai Theatre Club
|
|||
as at 1st April, 2018
|
|||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount
(â¹)
|
Capital Fund (Balancing Figure) |
3,60,000
|
Billiard Table |
3,00,000
|
|
Cash and Bank |
1,40,000
|
|
Creditors for Billiard Table |
80,000
|
|
|
|
|
||
4,40,000
|
4,40,000
|
||
|
|
Balance Sheet of Mumbai Theatre Club |
||||
as at 31st March, 2019 |
||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
Capital Fund (WN2) |
3,60,000 |
|
Furniture |
60,000 |
Add: Surplus |
1,66,500 |
5,26,500 |
Investments |
60,000 |
|
Billiard Table |
3,00,000 |
||
Outstanding Insurance Premium |
400 |
Prepaid Miscellaneous Expenses |
900 |
|
Advance Subscriptions |
3,500 |
Accrued Interest on Investments |
2,000 |
|
|
Outstanding Subscriptions |
9,000 |
||
|
Cash and Bank |
98,500 |
||
|
|
|||
5,30,400 |
5,30,400 |
|||
|
|
Page No 1.69:
Question 48:
Following Receipts and Payments Account was prepared from the Cash Book of Delhi Charitable Trust for the year ending 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT for the year ending 31st March, 2019 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balance b/d: | By Charity | 1,15,000 | |||
Cash in Hand | 1,15,000 | By Rent and Taxes | 32,000 | ||
Cash at Bank | 1,26,000 | By Salary | 60,000 | ||
To Donations | 90,000 | By Printing | 6,000 | ||
To Subscriptions | 4,28,000 | By Postage | 3,000 | ||
To Legacies Donations | 1,80,000 | By Advertisements | 45,000 | ||
To Interest on Investment | 45,000 | By Insurance | 20,000 | ||
To Sale of old Newspaper | 2,000 | By Furniture | 2,16,000 | ||
By Investment | 2,30,000 | ||||
By Balance c/d: | |||||
Cash in Hand | 99,000 | ||||
Cash at Bank | 1,60,000 | ||||
9,86,000 |
9,86,000 | ||||
Prepare Income and Expenditure Account for the year ended 31st March, 2019, and Balance Sheet as on that date after the following adjustments:
(i) Insurance premium was paid for insurance taken w.e.f. 1st July, 2018.
(ii) Interest on investment â¹ 11,000 accrued was not received.
(iii) Rent â¹ 6,000; Salary â¹ 9,000 and advertisement expenses â¹ 10,000 outstanding as on 31st March, 2019.
(iv) Legacy Donation is towards construction of Library Block.
Answer:
Income and Expenditure Account
for the year ending March 31, 2019
|
||||
Dr. |
|
Cr.
|
||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount (â¹)
|
|
Charity |
1,15,000
|
Donation |
90,000
|
|
Rent |
32,000
|
|
Subscription |
4,28,000
|
Add: Outstanding |
6,000
|
38,000
|
Interest on Investments (45,000 + 11,000) |
56,000
|
Salary |
60,000
|
|
Sale of Old Newspapers |
2,000
|
Add: Outstanding |
9,000
|
69,000
|
|
|
Advertisement |
45,000
|
|
|
|
Add: Outstanding |
10,000
|
55,000
|
|
|
Insurance |
20,000
|
|
|
|
Less: Prepaid |
5,000
|
15,000
|
|
|
Printing |
6,000
|
|
||
Postage |
3,000
|
|
||
Surplus |
2,75,000
|
|
||
5,76,000
|
5,76,000 | |||
|
|
Balance Sheet
as on March 31, 2019
|
|||||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount (â¹)
|
||
Capital Fund |
|
Cash |
99,000
|
||
Opening Balance |
2,41,000
|
|
Bank |
1,60,000
|
|
Add: Legacy |
1,80,000
|
|
Prepaid Insurance |
5,000
|
|
Add: Surplus |
2,75,000
|
6,96,000
|
Furniture |
2,16,000
|
|
Rent Outstanding |
6,000
|
Investment |
2,30,000
|
|
|
Salary Outstanding |
9,000
|
Add: Accrued Interest |
11,000
|
2,41,000
|
|
Adv. Exp. Outstanding | 10,000 | ||||
|
7,21,000
|
7,21,000
|
|||
Working Notes
WN1: Ascertainment of Capital Fund
Balance Sheet
as on March 31, 2018
|
|||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount (â¹)
|
Capital Fund |
2,41,000
|
Cash |
1,15,000
|
|
|
Banks |
1,26,000
|
2,41,000
|
|
2,41,000
|
|
Page No 1.70:
Question 49:
Given Below is the Receipts and Payments Account of a Mayur Club for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT
|
|||||
Dr. |
|
|
Cr. |
||
Receipts |
(â¹) |
Payments |
(â¹) |
||
To Balance b/d | 1,02,500 | By Salaries | 60,000 | ||
To Subscriptions: |
|
|
By Expenses |
7,500 |
|
2017-18
|
4,000 | By Drama Expenses | 45,000 | ||
2018-19
|
2,05,000 | By Newspapers | 15,000 | ||
2019-20
|
6,000 |
2,15,000
|
By Municipal Taxes |
4,000 |
|
To Donations |
54,000
|
By Charity |
35,000 |
||
To Proceeds of Drama Tickets |
95,000
|
By Investments |
2,00,000 |
||
To Sale of Waste Paper |
4,500
|
By Electricity Charges |
14,500 |
||
|
By Balance c/d |
90,000 |
|||
4,71,000
|
4,71,000
|
||||
|
|
Prepare club's Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheet as at that date after taking the following information into account:
(i) There are 500 members, each paying an annual subscription of â¹ 500, â¹â 5,000 are still in arrears for the year ended 31st March, 2018.
(ii) Municipal Taxes amounted to â¹â 4,000 per year is paid up to 30th June and â¹ â5,000 are outstanding of salaries.
(iii) Building stands in the books at â¹â 5,00,000.
(iv) 6% interest has accrued on investments for five months.
Answer:
â
Income and Expenditure Account for the year ended March 31, 2019 |
|||||
Dr. |
|
|
Cr. |
||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Municipal Taxes |
4,000 |
|
Subscription (500 members × Rs 500) |
2,50,000 |
|
Add: Prepaid in 2017-18 |
1,000 |
|
Interest Accrued on Investment |
5,000 |
|
Less: Prepaid in 2018-19 |
1,000 |
4,000 |
Profit from Drama: |
|
|
Salaries |
60,000 |
|
Proceeds |
95,000 |
|
Add: Outstanding |
5,000 |
65,000 |
Less: Drama Expenses |
45,000 |
50,000 |
Expenses |
7,500 |
Sale of Waste Paper |
4,500 |
||
Newspapers |
15,000 |
Donations |
54,000 |
||
Charity |
35,000 |
|
|
||
Electricity Charges |
14,500 |
|
|
||
Surplus (Balancing Figure) |
2,22,500 |
|
|
||
|
3,63,500 |
|
3,63,500 |
||
|
|
|
|
Balance Sheet as on April 01, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
|
Subscriptions Outstanding (4,000 + 5,000) |
9,000 |
Capital Fund (Balancing Figure) |
6,12,500 |
Municipal Taxes Prepaid |
1,000 |
|
|
Building |
5,00,000 |
|
|
Cash and Bank |
1,02,500 |
|
6,12,500 |
|
6,12,500 |
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
||
Advance Subscription |
6,000 |
Subscriptions Outstanding |
|
||
Salaries Outstanding |
5,000 |
For 2018-19 (2,50,000 – 2,05,000) |
45,000 |
|
|
|
|
For 2017-18 |
5,000 |
50,000 |
|
Capital Fund |
6,12,500 |
|
Prepaid Municipal Taxes |
1,000 |
|
Add: Surplus |
2,22,500 |
8,35,000 |
Building |
5,00,000 |
|
|
|
Investments |
2,00,000 |
|
|
|
|
Add: Accrued Interest |
5,000 |
2,05,000 |
|
|
|
Cash at Bank |
90,000 |
||
|
8,46,000 |
|
8,46,000 |
||
|
|
|
|
Page No 1.70:
Question 50:
From the following Receipts and Payments Account of Kapil Dev Club and from the given additional information, prepare Income and Expenditure Account for the year ending 31st December, 2019 and the Balance Sheet as at that date:
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2019 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Balance b/d | 1,90,000 |
By Salaries |
3,30,000 | ||
To Subscriptions | 6,60,000 | By Sports Material | 4,00,000 | ||
To Interest on Investment | 40,000 | By Balance c/d | 1,60,000 | ||
@ 8% p.a. for full year | |||||
8,90,000 |
8,90,000 | ||||
Additional Information:
(i) The club had received â¹ 20,000 for subscription in 2017-18 for 2018-19.
(ii) Salaries had been paid only for 11 months.
(iii) Stock of sports materials on 31st March, 2018 was â¹ 3,00,000 and on 31st March, 2019 â¹ 6,50,000.
Answer:
Books of Kapil Dev Club | |||||
Income and Expenditure Account for the year ending 31st March,2019 |
|||||
Dr. |
|
Cr. |
|||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||
Salary |
3,30,000 |
|
Subscription |
6,60,000 |
|
Add: Outstanding Salaries (WN3) |
30,000 |
3,60,000 |
Add: Advance in the beginning |
20,000 |
6,80,000 |
Sports Materials Consumed |
50,000 |
Interest on Investments |
40,000 |
||
Surplus (Excess of Income over Expenditure) |
3,10,000 |
|
|
||
|
7,20,000 |
|
7,20,000 |
||
|
|
|
|
Balance Sheet as on 31st March,2019 |
||||
Liabilities |
Amount (â¹) |
Assets |
Amount |
|
|
|
|
|
|
Outstanding Salaries |
30,000 |
Investments (WN4) |
5,00,000 |
|
Capital Fund |
9,70,000 |
|
Stock of Sports Material |
6,50,000 |
Add: Surplus |
3,10,000 |
12,80,000 |
Cash |
1,60,000 |
|
|
|
|
|
|
13,10,000 |
|
13,10,0000 |
|
|
|
|
|
Working Notes:
WN1: Calculation of amount of Sports Material Consumed:
Particulars |
Amount (â¹) |
Sports Material Purchased |
4,00,000 |
Add: Opening Stock of Sports Material |
3,00,000 |
Less: Closing Stock of Sports Material |
6,50,000 |
|
|
Sports Material Consumed |
50,000 |
WN2: Calculation of Capital Fund
Balance Sheet as on April 01,2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount |
Subscription Received in Advance |
20,0000 |
Investments |
5,00,000 |
Capital Fund (Balancing Figure) |
9,70,000 |
Stock of Sports Material |
3,00,000 |
|
|
Cash |
1,90,000 |
|
|
|
|
|
9,90,000 |
|
9,90,0000 |
|
|
|
|
WN3: Calculation of Outstanding Salaries
Outstanding Salaries =
WN4: Calculation of Investments
Investments =
Page No 1.71:
Question 51:
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 |
|||||
Dr.
|
|
Cr.
|
|||
Receipts
|
(â¹)
|
Payments
|
(â¹)
|
||
To Balance b/d
|
31,900 | âBy Rent | 16,800 | ||
To Entrance Fees | 5,500 | By Wages | 24,500 | ||
To Subscriptions | 1,80,000 | By Lighting Charges | 7,200 | ||
To Donations | 16,500 | By Books | 24,800 | ||
To Life Membership Fees | 25,000 | By Medicines (Polio Eradication Project) | 1,00,000 | ||
To Government Grant (Polio Eradication Project) | 2,00,000 | By Salaries to Doctors (Polio Eradication Project) | 80,000 | ||
To Proceeds of Seminar | 23,200 | By Office Expenses | 45,000 | ||
To Interest on Deposits | 2,400 | By 8% Fixed Deposits | 1,20,000 | ||
(On 1st October, 2018) | |||||
By Seminar Expenses | 20,200 | ||||
By Cash in Hand | 26,000 | ||||
By Bank A/c (Polio Eradication Project) | 20,000 | ||||
|
|
|
|||
|
4,84,500
|
|
4,84,500
|
||
|
|
|
|
Other information:
On 31st March, 2018, the Club possessed books of ââ¹ 2,00,000 and Furniture of â¹ 85,000. Provide depreciation on these assets @ 10% including the purchases during the year.
Subscriptions in arrears in the beginning of the year amounted to â¹ 3,500 and at the end of the year â¹ 5,500 were outstanding.
âThe Club paid three months' rent in advance both in the beginning and at the end of the year.
Answer:
Books of Delhi Medical Society
Income and Expenditure Account
for the year ended March 31, 2019
|
|||||||
Dr. |
Cr.
|
||||||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount
(â¹)
|
||||
Rent |
16,800
|
Entrance Fees |
5,500
|
||||
Add: Advance in the beginning |
4,200
|
Subscriptions |
1,80,000
|
||||
Less: Advanced at the end |
(4,200)
|
16,800
|
Add: Arrears at the end |
5,500
|
|||
Wages |
24,500
|
Less: Arrears in the beginning |
(3,500)
|
1,82,000
|
|||
Lighting Charges |
7,200
|
Donations |
16,500
|
||||
Office Expenses |
45,000
|
Interest on Deposits |
2,400
|
||||
Depreciation on: | Add: Accrued Interest |
2,400
|
4,800
|
||||
Furniture |
8,500
|
Profit from Seminar: | |||||
Books |
22,480
|
30,980
|
Proceeds |
23,200
|
|||
Surplus (Balancing Figure) |
87,320
|
Less: Expenses |
(20,200)
|
3,000
|
|||
2,11,800
|
2,11,800
|
||||||
Balance Sheet
as on April 01, 2018
|
|||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount
(â¹)
|
Advance Rent |
4,200
|
||
Subscription-in-Arrears |
3,500
|
||
Books |
2,00,000
|
||
Capital Fund (Balancing Figure) |
3,24,600
|
Furniture |
85,000
|
Cash in Hand |
31,900
|
||
3,24,600
|
3,24,600
|
||
Balance Sheet
as on March 31, 2019
|
|||||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount
(â¹)
|
||
Subscription-in-Arrears |
5,500
|
||||
Advance Rent |
4,200
|
||||
Books |
2,00,000
|
||||
Government Grant |
2,00,000
|
Add: Purchase |
24,800
|
||
Less: Medicines |
1,00,000
|
2,24,800
|
|||
Less: Salaries |
80,000
|
20,000
|
Less: 10% Depreciation |
(22,480)
|
2,02,320
|
Capital Fund |
3,24,600
|
Furniture |
85,000
|
||
Add: Surplus |
87,320
|
Less: 10% Depreciation |
8,500
|
76,500
|
|
Add: Life Membership |
25,000
|
4,36,920
|
Cash in Hand |
26,000
|
|
|
|
Cash at Bank |
20,000
|
||
8% Fixed Deposit |
1,20,000
|
||||
Add: Accrued Interest |
2,400
|
1,22,400
|
|||
4,56,920
|
4,56,920
|
||||
Working Note:
Calculation of Interest Accrued on Fixed Deposits
Interest on Fixed Deposits (1,20,000 × 8% × 6/12) |
4,800
|
Less: Interest Received |
(2,400)
|
Interest Accrued on Fixed Deposits |
2,400
|
Page No 1.71:
Question 52:
Receipts and Payments Account of Shankar Sports Club is given below for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT
for the year ended 31st March, 2019 |
|||||
Dr.
|
|
Cr.
|
|||
Receipts
|
(â¹)
|
Payments
|
(â¹)
|
||
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 following information:
Subscription outstanding on 31st March, 2018 is â¹ 1,200 and â¹ 2,300 on 31st March, 2019; opening stock of postage stamps is â¹ 300 and closing stock is â¹ 200; Rent â¹ 1,500 related to the year ended 31st March, 2018 and â¹ 1,500 is still unpaid. On 1st April, 2018 the club owned furniture â¹ 15,000, Furniture valued at â¹ 22,500 on 31st March, 2019. The club has a loan of â¹ 20,000 (@ 10% p.a.) which was taken, in year ended 31st March, 2018.
Answer:
In the books of Shankar Sports Club |
||||||
Dr. |
Income and Expenditure A/c |
Cr. |
||||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
|||
To Rent |
18,000 |
By Entrance Fess |
3,200 |
|||
To Wages |
7,000 |
By Locker Rent |
1,200 |
|||
To Interest |
2,000 |
By Profit from Entertainment |
3,000 |
|||
To Postage Consumed (WN1) |
1,100 |
By Subscriptions |
40,000 |
|
||
To Depreciation on Furniture (WN2) |
2,500 |
Less: Outstanding Sub. (31st March, 2018) |
1,200 |
|
||
To Salary |
24,000 |
Add: Outstanding Sub. (31st March, 2019) |
2,300 |
41,100 |
||
|
|
|
||||
|
By Deficit- Excess of Expenditure over Income |
6,100 |
||||
|
|
|||||
54,600 |
54,600 |
|||||
|
|
Working Notes:
1)
Postage Consumed | = | Opening Stock + Purchases – Closing Stock - Sales |
= | â¹ (300 + 1,000 – 200) = â¹ 1,100 |
Depreciation on Furniture | = | Opening Value + Purchases – Closing Value |
= | â¹ (15,000 + 10,000 – 22,500) = â¹ 2,500 |
Balance Sheet of Shankar Sports Club |
|||
as at 1st April, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
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 Deficit (Balancing Figure) |
2,400 |
|
|
|
||
21,500 |
21,500 |
||
|
|
Balance Sheet of Shankar Sports Club |
||||
as at 31st March, 2019 |
||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
|
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 |
||
|
Furniture |
22,500 |
||
|
|
|||
51,500 |
51,500 |
|||
|
|
Page No 1.72:
Question 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 |
|||||
Dr. | Cr. | ||||
Receipts | â¹ | Payments | â¹ | ||
To Cash in Hand on 1st April, 2018 |
71,300 |
By Medicines |
â3,05,900 | ||
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 full year | 70,000 | By Petty Expenses | 4,610 | ||
To Proceeds from Charity Show | 1,04,500 | By Equipments | 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 (â¹) |
As at 31st March, 2019 (â¹) |
Subscriptions Due | 2,400 | 2,800 |
Subscriptions Received in Advance | 640 | 1,000 |
Stock of Medicines | 88,100 | 97,400 |
Estimated value of Equipments | 2,12,000 | 3,16,000 |
Building (cost less depreciation) | 4,00,000 | 3,80,000 |
Answer:
Books of Rama Krishna Mission Charitable Hospital Income and Expenditure Account for the year ended March 31, 2019 |
|||||||
Dr. |
|
|
|
|
Cr. |
||
Expenditure |
Amount (â¹) |
Income |
Amount (â¹) |
||||
Medicine |
30,590 |
|
Subscription |
47,996 |
|
||
Add: Opening Stock |
8,810 |
|
Add: Due for 2018-19 |
280 |
|
||
Less: Closing Stock |
(9,740) |
29,660 |
Less: Due for 2017-18 |
(240) |
|
||
Doctor’s Honorarium |
9,000 |
Less: Advance for 2019-20 |
(100) |
|
|||
Salaries |
27,500 |
Add: Advance for 2018-19 |
64 |
48,000 |
|||
Petty Expenses |
461 |
Donations |
14,500 |
||||
Expenses on Charity Show |
750 |
Interest on Investments |
7,000 |
||||
Depreciation on Equipments |
4,600 |
Proceeds from Charity Show |
10,450 |
||||
Depreciation on Building |
2,000 |
|
|
||||
Surplus (Balancing Figure) |
5,979 |
|
|
||||
|
79,950 |
|
79,950 |
||||
|
|
||||||
Balance Sheet as on April 01, 2018 |
|||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
Advance Subscription |
64 |
Subscription Due |
240 |
Capital Fund (Balancing Figure) |
1,77,316 |
Stock of Medicines |
8,810 |
|
|
Equipments |
21,200 |
|
|
Building |
40,000 |
|
|
Cash in Hand |
7,130 |
|
|
Investments |
1,00,000 |
|
1,77,380 |
|
1,77,380 |
|
|
Balance Sheet as on March 31, 2019 |
|||||
Liabilities |
Amount (â¹) |
Assets |
Amount (â¹) |
||
Advance Subscription |
100 |
Subscription Due |
280 |
||
Capital Fund |
1,77,316 |
|
Stock of Medicines |
9,740 |
|
Add: Surplus |
5,979 |
1,83,295 |
Equipments |
21,200 |
|
|
|
Add: Purchases |
15,000 |
|
|
|
|
|
36,200 |
|
|
|
|
Less: Depreciation |
(4,600) |
31,600 |
|
|
|
Building |
40,000 |
|
|
|
|
Less: Depreciation |
(2,000) |
38,000 |
|
|
|
Cash in Hand |
3,775 |
||
|
|
7% Investments |
1,00,000 |
||
|
1,83,395 |
|
1,83,395 |
||
|
|
|
|
Working Note:
Calculation of Value of Investments
Page No 1.72:
Question 54:
Following is the Receipt and Payment Account of Women's Welfare Club for the year ended 31st March, 2019:
RECEIPTS AND PAYMENTS ACCOUNT |
|||||
Dr. |
|
Cr. |
|||
Receipts |
â¹ |
Payments |
â¹ |
||
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 Equipments | 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 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
(â¹) |
31st March, 2019
(â¹) |
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 |
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|
|
Prepare Income and Expenditure Account for the year ended 31st March, 2019,and Balance Sheet as on that date.
Answer:
Income and Expenditure Account
for the year ending March 31, 2019
|
|||||
Dr. |
|
Cr.
|
|||
Expenditure
|
Amount
(â¹)
|
Income
|
Amount (â¹)
|
||
Stationery |
32,500
|
Donation |
30,000
|
||
Electricity Charges |
95,500
|
|
Government Grant |
1,50,000
|
|
Add: Outstanding |
12,500
|
1,08,000
|
Sale of Old Newspapers |
3,000
|
|
Salary |
1,25,000
|
|
Proceeds of Charity Show (Net) |
36,000
|
|
Add: Current O/s |
18,000
|
|
Interest on Investments |
70,000
|
|
Less: Previous O/s |
12,000
|
1,31,000
|
Sundries Income |
4,000
|
|
Insurance |
75,000
|
|
Subscription |
8,17,500
|
|
Add: Previous |
7,000
|
|
Add: Current O/s |
25,000
|
|
Less: Current |
3,000
|
79,000
|
Add: Previous Adv. |
17,500
|
|
Petty Expenses |
5,000
|
Less: Previous O/s |
37,500
|
|
|
Newspaper |
10,000
|
Less: Current Adv. |
10,000
|
8,12,500
|
|
Lectures Fees |
1,65,000
|
|
|||
Honorarium to Secretary |
1,20,000
|
|
|||
Depreciation on Equipment |
54,000
|
|
|||
Depreciation on Building |
60,000
|
|
|||
Surplus |
3,41,000
|
|
|||
11,05,500
|
11,05,500 | ||||
|
|
Balance Sheet
as on March 31, 2019
|
|||||
Liabilities
|
Amount
(â¹) |
Assets
|
Amount
(â¹) |
||
Capital Fund |
|
Prepaid Insurance |
3,000
|
||
Opening Balance |
22,66,000
|
|
Subscription Outstanding |
25,000
|
|
Add: Surplus |
3,41,000
|
26,07,000
|
Investments |
7,00,000
|
|
Outstanding Salary |
18,000
|
Equipment |
2,56,000
|
|
|
Subscription Received in Advance |
10,000
|
Add: Purchases |
3,00,000
|
|
|
Electricity Charges Outstanding |
12,500
|
Less: Depreciation |
54,000
|
5,02,000
|
|
|
Cash |
20,500
|
|||
|
Bank |
2,50,000
|
|||
|
Building |
12,00,000
|
|
||
|
Less: Depreciation |
60,000
|
11,40,000
|
||
|
Stock of Stationery |
7,000
|
|||
|
26,47,500
|
26,47,500
|
|||
Working Notes
WN1: Ascertainment of Capital Fund
Balance Sheet
as on March 31, 2018
|
|||
Liabilities
|
Amount
(â¹)
|
Assets
|
Amount (â¹)
|
Outstanding Salary |
12,000
|
Prepaid Insurance |
7,000
|
Subscription Received in Advance |
17,500
|
Subscription Outstanding |
37,500
|
Capital Fund |
22,66,000
|
Stock of Stationery |
22,500
|
|
Equipment |
2,56,000
|
|
|
Building |
12,00,000
|
|
|
Cash |
22,500
|
|
|
Bank |
50,000
|
|
|
Investments |
7,00,000
|
|
22,95,500
|
22,95,500
|
||
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