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Page No 7.51:
Question 1:
From the following particulars of Evergreen club, prepare Receipts and payments Account for the year ended 31st March,2018:
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₹ |
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₹ | |
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Cash in Hand on 1st April,2017 |
50,000 3,40,000 15,70,000 2,80,000 5,00,000 50,000 2,30,000 25,000 |
Newspaper and Magazines Sale of Old Newspaper Books purchased Sports Materials Purchased Interest on Investments Received Honorarium to coaches Cash in Hand on 31st March,2018 Cash at Bank on 31 st March ,2018 |
87,000 12,000 3,40,000 4,70,000 50,000 1,50,000 30,000 ? |
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Answer:
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Books of Evergreen Club |
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Receipts and Payments Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Receipts |
Amount (Rs) |
Payments |
Amount (Rs) |
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Balance b/d |
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Investments Purchased |
5,00,000 |
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Cash in Hand |
50,000 |
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Rent Paid |
50,000 |
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Cash at Bank |
3,40,000 |
3,90,000 |
General Expenses |
2,30,000 |
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Subscription Received |
15,70,000 |
Postage and Stationery |
25,000 |
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Donation Received |
2,80,000 |
Newspapers and Magazines |
87,000 |
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Sale of Old Newspapers |
12,000 |
Books Purchased |
3,40,000 |
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Interest on Investments Received |
50,000 |
Sports Material Purchased |
4,70,000 |
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Honorarium to Coacher |
1,50,000 |
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Balance c/d |
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Cash in Hand |
30000 |
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Cash at Bank (Balancing Figure) |
4,20000 |
4,50,000 |
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23,02,000 |
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23,02,000 |
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Page No 7.51:
Question 2:
How are the following items shown in the accounts of a Not-for-Profit Organisation ?
| ₹ | |
| Tournament Fund | 50,000 |
| Tournament Expenses | 15,000 |
| Receipts from Tournament | 20,000 |
Answer:
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Balance Sheet |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Tournament Found |
50,000 |
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Add: Tournament Receipts |
20,000 |
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Less: Tournament Expenses |
(15,000) |
55,000 |
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Page No 7.52:
Question 3:
How are the following dealt with in the accounts of a Not-for-Profit Organisation ?
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Case I
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Dr. (₹)
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Cr. (₹) |
Case II
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Dr. (₹) | Cr. (₹) |
| 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 19,000 |
1,00,000 3,000 |
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Answer:
Case 1
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Balance Sheet |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Prize Fund |
50,000 |
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Less: Prize Paid |
(12,000) |
38,000 |
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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
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Balance Sheet |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Match Fund |
1,00,000 |
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Match Fund Investments |
60,000 |
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Less: Match Expenses |
(35,000) |
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Add: Interest on Match Fund Investments |
3,000 |
68,000 |
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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 7.52:
Question 4:
How are the following dealt with while preparing the final accounts of a club?
TRIAL BALANCE as at 31st March,2018
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Particulars
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Dr. (₹)
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Cr. (₹) |
| Match Fund Match Fund Investments Match Fund Bank Balance Interest on Match Fund Investments Match Expenses |
...... 72,000 3,500 ..... 5,500 |
80,000 ...... ...... 2,880 ...... |
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Answer:
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Balance Sheet |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Match Fund |
80,000 |
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Match Fund Investment |
72,000 |
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Add: Interest on Match Fund Investment |
2,880 |
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Match Fund Bank Balance |
3,500 |
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Less: Match Expenses |
(5,500) |
77,380 |
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Page No 7.52:
Question 5:
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, 2018:
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Details
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₹
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| Match expenses paid during the year ended 31st March, 2018 Match Fund as on 31st March, 2017 Donation for Match Fund (Received during the year ended 31st March, 2018) proceeds from the sale of match tickets (Received during the year ended 31st March, 2018) |
1,02,000 24,000 40,000 15,000 |
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Answer:
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Balance Sheet |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Match Fund |
24,000 |
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Add: Donation for Match Fund |
40,000 |
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Add: Proceed from Sale of Tickets |
15,000 |
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Less: Match Expenses (Note) |
(79,000) |
NIL |
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Income and Expenditure Account |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Match Expenses (Note) |
23,000 |
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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 7.52:
Question 6:
Show how are the following items dealt with while preparing the final accounts for the year ended 31st March , 2018 of a Not-for-profit Organisation:
Case I Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed . Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .
Case II Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .
Case III Expenditure on construction of Pavilion is ₹ 6,00,000. The construction work is in progress and has not yet completed .Pavilion Fund as at 31st March, 2017 is ₹ 10,00,000, and Capital Fund as at 31st March , 2017 is ₹ 20,00,000 .Donation Received for Pavilion on 1st January,2018 is ₹ 5,00,000
Answer:
Case 1
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Balance Sheet as on March 31, 2016 |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Capital Fund |
20,00,000 |
Pavilion Work-in-Progress |
6,00,000 |
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Case 2
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Balance Sheet as on March 31, 2016 |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Pavilion Fund |
10,00,000 |
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Pavilion Work-in-Progress |
6,00,000 |
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Less: Expenditure on Construction of Pavilion |
(6,00,000) |
4,00,000 |
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Capital Fund |
20,00,000 |
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Add: Pavilion Work-in-Progress |
6,00,000 |
26,00,000 |
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Case 3
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Balance Sheet as on March 31, 2016 |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Pavilion Fund |
10,00,000 |
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Add: Donation |
5,00,000 |
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Pavilion Work-in-Progress |
6,00,000 |
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Less: Expenditure on Construction of Pavilion |
(6,00,000) |
9,00,000 |
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Capital Fund |
20,00,000 |
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Add: Pavilion Work-in-Progress |
6,00,000 |
26,00,000 |
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Page No 7.53:
Question 7:
How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2018 in each of the following alternative cases?
Case I During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.
Case II During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.Out of this , ₹ 25,000 was received from individuals whose membership is not yet approved.
Answer:
Case 1
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Income and Expenditure Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Entrance Fees |
1,00,000 |
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Case 2
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Income and Expenditure Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Entrance Fees |
75,000 |
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(1,00,000 – 25,000) |
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Page No 7.53:
Question 8:
In the year ended 31st March , 2018, the subscriptions received by the jaipur Literary Society were ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March , 2017. On 31st March, 2018, subscriptions due but not received were ₹ 10,000.What amount should be credited to Income and Expenditure Account for the year ended 31st March, 2018 as subscription ?
Answer:
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Income and Expenditure Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Subscription |
4,20,000 |
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Less: Outstanding for 2014-15 |
14,000 |
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Add: Outstanding for 2015-16 |
10,000 |
4,16,000 |
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Page No 7.53:
Question 9:
Subscriptions received during the year ended 31st March , 2018 are:
₹ ₹
For the year ended 31st March, 2017 1,600
For the year ended 31st March,2018 84,400
For the year ended 31st March,2019 3,200 89,200
There are 450 members , each paying an annual subscription of ₹ 200; ₹ 1,800 were in arrears for the year ended 31st March, 2017.
calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2018.
Answer:
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Income and Expenditure Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Subscription |
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(450 Members × Rs 200 each) |
90,000 |
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Page No 7.53:
Question 10:
In the year ended 31st March , 2018 , subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2017 and ₹ 10,000 for the year ended 31st March , 2019. At the end ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2017 were ₹ 8,000, while subscriptions received in advance on the same date were ₹ 18,000.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2018.
Answer:
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Statement of Subscription for the year ended March 31, 2018 |
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Particulars |
Amount (Rs) |
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Subscription received during the year 2017-18 |
4,09,000 |
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Add: Outstanding for 2017-18 (Current year) |
15,000 |
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Less: Received for 2016-17 (Previous year) |
(5,000) |
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Add: Advance received in 2016-17 (Previous year) |
18,000 |
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Less: Advance received for 2018-19 (Next year) |
10,000) |
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Subscription to be credited to Income and Expenditure Account |
4,27,000 |
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Page No 7.53:
Question 11:
From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
₹
1st April, 2017 Subscriptions in Arrears 50,000
Subscriptions Received in Advance 30,000
31st March, 2018 Subscriptions in Arrears 25,000
Subscriptions Received in Advance 70,000
Subscriptions received during the year ended 31st March, 2018 - ₹ 3,00,000
Answer:
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Statement of Subscription for the year ended March 31, 2018 |
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Particulars |
Amount (Rs) |
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Subscription received during the year 2017-18 |
3,00,000 |
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Less: Subscription-in-Arrears for 2016-17 |
50,000 |
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Add: Subscription-in-Arrears for 2017-18 |
25,000 |
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Add: Subscription-in Advance for 2017-18 |
30,000 |
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Less: Subscription-in Advance for 2018-19 |
70,000 |
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Subscription to be Credited to Income and Expenditure Account |
2,35,000 |
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Page No 7.54:
Question 12:
Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2018 for each of the following cases:
| Particulars | ₹ | |
| Case I. |
(i) Subscriptions collected during the year ended 31st March, 2018
(ii) Subscriptions in arrears for the year ended 31st March, 2018
(iii) Subscriptions received in advance for the year ended 31st March, 2019 |
2,50,000 6,000 5,000 |
| Case II. | (i) Subscriptions collected during the year ended 31st March, 2018 (ii) Subscriptions for the year ended 31st March, 2018 collected in the year ended 31st March, 2017 (iii) Subscriptions unpaid for the year ended 31st March, 2018 |
49,000 3,000 2,000 |
| Case III. | (i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018 (iii) Subscriptions not yet collected for the year ended 31st March, 2018 |
25,000 3,000 5,000 |
| Case IV. | (i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018 (iii) Subscriptions not yet collected for the year ended 31st March, 2018 (iv) Subscriptions for the year ended 31st March, 2019 received in advance |
80,000 5,000 8,000 2,000 |
| Case V. | (i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2017 (iii) Subscriptions received in advance on 31st March, 2017 (iv)Subscriptions received in advance on 31st March, 2018 (v) Subscriptions not yet collected for the year ended 31st March, 2018 |
90,000
5,000 3,000 4,000 6,000
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Answer:
Case 1
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Statement of Subscription for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions collected during the year 2015-16 |
2,50,000 |
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Add: Subscriptions-in-arrears for the year 2015-16 |
6,000 |
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Less: Subscriptions received in advance for the year 2016-17 |
(5,000) |
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Subscriptions Income for the year 2015-16 |
2,51,000 |
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Case 2
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Statement of Subscription for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions collected during the year 2015-16 |
49,000 |
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Add: Subscriptions collected for 2015-16 in 2014-15 |
3,000 |
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Add: Subscriptions unpaid for the year 2015-16 |
2,000 |
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Subscriptions Income for the year 2015-16 |
54,000 |
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Case 3
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Statement of Subscription for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions received during the year 2015-16 |
25,000 |
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Less: Subscriptions outstanding in the beginning of 2015-16 |
(3,000) |
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Add: Subscriptions yet not collected for 2015-16 |
5,000 |
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Subscriptions Income for the year 2015-16 |
27,000 |
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Case 4
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Statement of Subscription for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions received during the year 2015-16 |
80,000 |
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Less: Subscriptions outstanding in the beginning of 2015-16 |
(5,000) |
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Add: Subscriptions yet not collected for 2015-16 |
8,000 |
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Less: Subscriptions for 2016-17 received in advance |
(2,000) |
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Subscriptions Income for the year 2015-16 |
81,000 |
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Case 5
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Statement of Subscription for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions received during the year 2015-16 |
90,000 |
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Less: Subscriptions outstanding at the end of 2014-15 |
(5,000) |
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Add: Subscriptions received in advance on Mar. 31, 2015 |
3,000 |
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Less: Subscriptions received in advance on Mar. 31, 2016 |
(4,000) |
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Add: Subscriptions not yet collected for 2015-16 |
6,000 |
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Subscriptions Income for the year 2015-16 |
90,000 |
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Page No 7.54:
Question 13:
From the following particulars , calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
₹
(a) Subscriptions in arrears on 31st March ,2017 500
(b) Subscriptions received in advance on 31st March, 2017 for the year ended on 31st March, 2018 1,100
(c) Total Subscriptions received during the year ended 31st March , 2018 35,400
(including ₹ 400 for the year ended 31st March , 2017, ₹ 1,200 for the year ended
31st March, 2019 and ₹ 300 for the year ended 31st March, 2020)
(d) Subscriptions outstanding for year ended 31st March , 2018 400
Answer:
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Statement of Subscriptions for the year ended March 31, 2016 |
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Particulars |
Amount (Rs) |
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Subscriptions received during 2015-16 |
35,400 |
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Less: Subscriptions-in-arrears received for 2014-15 |
(400) |
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Less: Subscriptions received-in-advance for 2016-17 |
(1,200) |
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Less: Subscriptions received-in-advance for 2017-18 |
(300) |
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Add: Subscriptions Outstanding for 2015-16 |
400 |
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Add: Subscriptions received in 2014-15 for 2015-16 |
1,100 |
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Subscriptions to be credited to Income and Expenditure Account |
35,000 |
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Page No 7.54:
Question 14:
Receipts and Payments Account of Friends Club showed that ₹ 6,85,000 were received by way of subscriptions for the year ended on 31st March, 2018.
The additional information was as under :
(a) Subscription outstanding as on 31st March, 2017 were ₹ 65,000 .
(b) Subscription received in advance as on 31st March , 2017 were ₹ 41,000.
(c) Subscription outstanding as on 31st March, 2018 were ₹ 54,000 .
(d) Subscription received in advance as on 31st March , 2018 were ₹ 25,000.
Show how the above information would appear in the final accounts for the year ended on 31st March, 2018 of Friends Club.
Answer:
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Income and Expenditure Account
for the year ending March 31, 2018
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| Dr. |
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Cr. | |||||
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Expenditure
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Amount
(₹)
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Income
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Amount (₹)
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Subscriptions |
6,90,000
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Balance Sheet
as on March 31, 2018
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Liabilities
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Amount
(₹)
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Assets
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Amount (₹)
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| Subscriptions Received in Advance |
25,000
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Subscriptions Outstanding |
54,000
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Balance Sheet
as on March 31, 2017
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Liabilities
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Amount
(₹)
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Assets
|
Amount (₹)
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| Subscriptions Received in Advance |
41,000
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Subscriptions Outstanding |
65,000
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Working Notes:
WN1: Calculation of Subscription Income
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Particulars
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Amount
(₹)
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| Subscription received during 2017-18 |
6,85,000
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| Subscription outstanding in 2017-18 |
54,000
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| Subscription received in advance in 2016-17 |
41,000
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| Subscription outstanding in 2016-17 |
(65,000)
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| Subscription received in advance in 2017-18 |
(25,000)
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| Credited to Income and Expenditure Account | 6,90,000 |
Page No 7.55:
Question 15:
How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March, 2017 and 2018 ?
₹
Subscriptions received during the year ended 31st March, 2018 3,58,500
Subscriptions outstanding on 31st March ,2017 30,000
Subscriptions received in Advance on 31st March,2017 22,500
Subscriptions received in Advance on 31st March,2018 13,500
Subscriptions outstanding on 31st March ,2018 37,500
(including ₹ 12,500 for the year ended 31st March, 2017)
Answer:
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Income and Expenditure Account for the year ended March 31, 2018 |
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Dr. |
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Cr. |
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Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
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Subscriptions |
3,58,500 |
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Add: Outstanding at the end |
37,500 |
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Add: Advance in the beginning |
22,500 |
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Less: Outstanding in the beginning |
30,000 |
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Less: Advance at the end |
13,500 |
3,75,000 |
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Balance Sheet as on March 31, 2017 |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Subscription received in Advance |
2,250 |
Subscriptions Outstanding |
3,000 |
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Balance Sheet as on March 31, 2018 |
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Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
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Subscription received in Advance |
1,350 |
Subscriptions Outstanding |
3,750 |
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Page No 7.55:
Question 16:
From the following information , calculate amount of subscriptions outstanding for the year ended 31st March, 2018:
A club has 200 embers each paying an annual subscription of ₹ 1,000 . The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions . The following additional information is provided :
₹
Subscriptions Outstanding on 31st March, 2017 30,000
Subscriptions Received in Advance on 31st March, 2018 40,000
Subscriptions Received in Advance on 31st March, 2017 14,000
Answer:
|
Subscriptions Account |
|||
|
Particulars |
Amount (Rs) |
Particulars |
Amount (Rs) |
|
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 7.55:
Question 17:
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, 2018:
|
Particulars
|
1 st April, 2017
(₹) |
31 st March, 2018 (₹) |
Stock of Medicines Creditors for Medicines |
1,75,750 15,06,900 |
1,44,650 18,20,700 |
|
|
|
|
Medicines purchased during the year ended 31st March, 2018 were ₹ 60,80,700 .
Answer:
|
Statement of Medicine Consumed during the year 2015-16 |
|
|
Particulars |
Amount (Rs) |
|
Medicine Purchased during the year 2015-16 |
60,80,700 |
|
Add: Stock in the beginning (as on April 01, 2015) |
1,75,750 |
|
Less: Stock at the end (as on March 31, 2016) |
(1,44,650) |
|
Medicine to be debited to Income and Expenditure Account |
61,11,800 |
|
|
|
Page No 7.55:
Question 18:
Calculate amount of medicines consumed during the year ended 31st March, 2018: ₹
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, 2018 |
|
|
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 2017-18 |
2,90,000 |
|
|
|
Page No 7.55:
Question 19:
Calculate amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2018:
(i) Amount paid for stationery during the year ended 31st March , 2018 ₹5,400; Stock of Stationery in Hand on 31st March, 2018 ₹250.
(ii) Stock of Stationery in Hand on 1st April, 2017₹ 1,500; Payment made for Stationery during the year ended 31st March, 2018₹5,400; Stock of Stationery in Hand on 31st March, 2018₹250.
₹
(iii) Stock of Stationery on 1st April, 2017 1,500
Creditors for Stationery on 1st April, 2017 1,000
Amount paid for Stationery during the year 5,400
Stock of Stationery on 31st March, 2018 250
Answer:
(a)
|
Statement of Stationery Consumed at the end of March 31, 2018 |
|
|
Particulars |
Amount (Rs) |
|
Amount paid for Stationery during the year ended 31st March, 2018 |
5,400 |
|
Less: Closing Stock (as on March 31, 2018) |
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, 2018 |
|
|
Particulars |
Amount (Rs) |
|
Payment made for Stationery during the year ended 31st March, 2018 |
5,400 |
|
Add: Opening Stock (as on April 01, 2017) |
1,500 |
|
Less: Closing stock (as on March 31, 2018) |
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, 2018 |
|
|
Particulars |
Amount (Rs) |
|
Amount paid for Stationery during the year ended 31st March, 2018 |
5,400 |
|
Add: Opening Stock (as on April 01, 2017) |
1,500 |
|
Less: Closing stock (as on March 31, 2018) |
250 |
|
Less: Creditors for Stationery in the beginning (April 01, 2017) |
1,000 |
|
Amount of Stationery to be posted to Income and Expenditure Account |
5,650 |
|
|
|
Page No 7.56:
Question 20:
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 , 2018:
| ₹ | |
| Stock of Stationery as at 1st April, 2017 | 12,000 |
| Creditors for Stationery as at 1st April, 2017 | 25,600 |
| Amount paid for Stationery during the year ended 31st March,2018 | 1,40,000 |
| Stock of Stationery as at 31st March,2018 | 23,200 |
| Creditors for Stationery as at 31st March,2018 | 24,000 |
Answer:
|
Statement of Stationery Consumed for the year ended March 31, 2017 |
|
|
Particulars |
Amount (Rs) |
|
Amount paid for Stationery during the year 2016-17 |
1,40,000 |
|
Add: Opening Stock (as on April 01, 2016) |
12,000 |
|
Less: Closing Stock (as on March 31, 2017) |
(23,200) |
|
Add: Creditors at the end (as on March 31, 2017) |
24,000 |
|
Less: Creditors in the beginning (as on April 01, 2016) |
(25,600) |
|
Amount of Stationery be shown in Income and Expenditure Account |
1,27,200 |
|
|
|
Page No 7.56:
Question 21:
Calculate the amount that will be posted to the income and Expenditure Account for the year ended 31st March, 2018:
| ₹ | |
| Stock of Stationery on 1st April, 2017 | 30,000 |
| Creditors for Stationery on 1st April, 2017 | 20,000 |
| Advances paid for Stationery carried forward from the year ended 31st March, 2017 | 2,000 |
| Amount paid for Stationery during the year ended 31st March,2018 | 1,08,000 |
| Stock of Stationery on 31st March,2018 | 13,000 |
| Advance paid for Stationery on 31st March,2018 | 3,000 |
Answer:
|
Statement of Stationery for the year ended Mar. 31, 2018 |
|
|
Particulars |
Amount (Rs) |
|
Amount paid for Stationery during the year 2017-18 |
1,08,000 |
|
Add: Opening Stock (as on Apr. 01, 2017) |
30,000 |
|
Less: Closing stock (as on Mar. 31, 2018) |
5,000 |
|
Less: Creditors in the beginning (as on Apr. 01, 2017) |
20,000 |
|
Add: Creditors at the end (as on Mar. 31, 2018) |
13,000 |
|
Add: Advance in the beginning (as on Apr. 01, 2017) |
2,000 |
|
Less: Advance at the end (as on Mar. 31, 2018) |
3,000 |
|
Amount to be posted to Income and Expenditure Account |
1,25,000 |
|
|
|
Page No 7.56:
Question 22:
How are the following dealt with while preparing the final accounts for the year ended 31st March , 2018?
|
RECEIPTS AND PAYMENTS ACCOUNT ( AN EXTRACT ) for the year ended 31ST March, 2018 |
||||
|
Dr. |
|
Cr. | ||
| Receipts
|
₹ |
Payments |
₹ | |
|
|
By Payments for Sports Material | 1,40,000 | ||
|
|
||||
|
|
|
|||
|
BALANCE SHEET (AN EXTRACT) as at 1st April, 2017 |
||||
|
|
|
|||
| Liabilities
|
₹ |
Assets |
₹ | |
|
|
| |||
| Creditors foe Sports Materials | 6,000 | Sports Materials | 8,000 | |
|
|
|
|||
|
|
|
|||
|
|
|
|||
Additional information :
(i) Sports Materials in Hand on 31st March, 2018₹ 22,000
Answer:
|
Income and Expenditure Account for the year ended March 31, 2015 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|||
|
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, 2015 |
|||
|
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 (Rs) |
Income |
Amount (Rs) |
||
|
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 7.56:
Question 23:
How are the following dealt with while preparing the final accounts for the year ended 31st March , 2018?
|
RECEIPTS AND PAYMENTS ACCOUNT ( AN EXTRACT ) for the year ended 31ST March, 2018 |
||||
|
Dr. |
|
Cr. | ||
| Receipts
|
₹ |
Payments |
₹ | |
|
|
By Payments for Medicines | 1,50,000 | ||
|
|
||||
|
|
|
|||
|
|
||||
Additional information :
| As at 1st April, 2017 (₹) | As at 31st March, 2018 (₹) | |
| 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, 2017 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|||
|
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, 2016 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors for Medicines |
40,000 |
Stock of Medicines |
50,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2017 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors for Medicines |
60,000 |
Stock of Medicines |
75,000 |
|
|
|
|
|
Page No 7.57:
Question 24:
How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March , 2018?
|
RECEIPTS AND PAYMENTS ACCOUNT ( AN EXTRACT ) for the year ended 31ST March, 2018 |
||||
|
Dr. |
|
Cr. | ||
| Receipts
|
₹ |
Payments |
₹ | |
|
To Sale of Sports Materials |
26,000 | By Creditors for Sports Materials | 61,000 | |
| (Book value ₹ 20,000) | By Cash purchase of Sports Materials | 10,000 | ||
|
|
|
|||
|
|
||||
Additional information :
| As at 1st April, 2017 (₹) | As at 31st March, 2018 (₹) | |
| 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, 2016 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|||
|
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, 2015 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors for Sport Materials |
7,000 |
Stock of Sport Materials |
20,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors for Sport Materials |
15,000 |
Stock of Sport Materials |
25,000 |
|
|
|
|
|
Page No 7.57:
Question 25:
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, 2018 and Balance Sheets as at 31st March , 2018:
|
|
|||
|
|
|||
|
Particulars |
31st March, 2017 |
31st March, 2018 |
|
|
Stocks of Sports Materials |
6,200 |
4,800 |
|
|
|
|
|
|
Answer:
|
Extract of Income and Expenditure Account for the year ended March 31, 2016 |
|||||
|
Dr. |
|
Cr. |
|||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||
|
Sports Material Consumed |
92,800 |
|
|
||
|
|
|
|
|
||
|
Balance Sheet as on March 2015 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Creditors for Sports Materials |
9,800 |
Stock of Sports Materials |
6,200 |
|
|
|
Advance paid for Sports Materials |
11,000 |
|
|
|
|
|
|
Balance Sheet as on March 2016 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
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 (Rs) |
|
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 (Rs) |
Income |
Amount (Rs) |
||
|
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 7.57:
Question 26:
The book value of furniture on 1st April, 2017 is ₹ 60,000. Half of this furniture is sold for ₹ 20,000 on 30th September,2017. 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, 2018.
Answer:
|
Furniture Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
||
|
2017 |
|
|
2017 |
|
|
||
|
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 |
||
| 2018 | |||||||
|
|
|
|
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, 2018 |
|||||
|
Dr. |
|
Cr. |
|||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||
|
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 (Rs) |
|
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, 2017 |
28,500 |
|
Less: Sale Value |
20,000 |
|
Loss on Sale of Furniture |
8,500 |
Page No 7.58:
Question 27:
Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2017. It sold old furniture , having book value of ₹ 20,000 as at 1st April , 2017 at a loss of 20% on 31st December, 2017 . Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2017.
Prepare Furniture Account for the year ended 31st March, 2018.
Answer:
|
Furniture Account |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
||
|
2015 |
|
|
2015 |
|
|
||
|
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 |
2016 |
|
|
||
|
|
|
|
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 (Rs) |
|
Book Value of Furniture (i) as on April 01, 2015 |
20,000 |
|
Less: Depreciation (for 9 Months) [20,000 × 10% × 9/12] |
(1,500) |
|
Book Value on December 31, 2015 |
18,500 |
|
Less: Loss on Sale of Furniture (18,500 × 20%) |
(3,700) |
|
Sale Value of Furniture |
14,800 |
Page No 7.58:
Question 28:
In the year ended 31st March, 2018, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March ,2018 from the following additional information:
| ₹ | |
| Prepaid Salaries on 31st March, 2017 | 24,000 |
| Prepaid Salaries on 31st March, 2018 | 12,000 |
| Outstanding Salaries on 31st March, 2017 | 18,000 |
| Outstanding Salaries on 31st March, 2018 | 15,000 |
Answer:
|
Statement of Salaries for the year ended March 31, 2016 |
|
|
Particulars |
Amount (Rs) |
|
Amount paid for Salaries |
20,400 |
|
Add: Prepaid Salaries as on March 31, 2015 |
2,400 |
|
Less: Prepaid Salaries as on March 31, 2016 |
(1,200) |
|
Less: Outstanding Salaries as on March 31, 2015 |
(1,800) |
|
Add: Outstanding Salaries as on March 31, 2016 |
1,500 |
|
Salaries chargeable to Income and Expenditure Account |
21,300 |
|
|
|
Page No 7.58:
Question 29:
How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2018?
| 1st April, 2017 | 31st March, 2018 | |
| Outstanding Locker Rent | ₹ 4,600 | ₹ 6,300 |
| Advance Locker Rent | ₹ 3,000 | ₹ 4,000 |
Locker Rent received during the year ended 31st March, 2018 ₹ 52,000.
Answer:
|
Income and Expenditure Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
|||
|
|
|
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 7.58:
Question 30:
Prepare Income and Expenditure Account for the year ended 31st March, 2018 from the following:
|
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 |
|||||
|
Dr. |
|
Cr. |
|||
| Receipts
|
₹ |
Payments |
₹ |
||
|
To Balance b/d (cash) |
1,80,000 |
By Salaries |
4,80,000 |
||
|
|
|
|
|||
|
|
13,20,000 |
|
13,20,000 |
||
|
|
|
|
|
||
Answer:
|
Income and Expenditure Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||
|
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 7.58:
Question 31:
Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2018:
|
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 |
|||||
|
Dr. |
|
Cr. |
|||
| Receipts
|
₹ |
Payments |
₹ |
||
|
To Balance b/d (Cash at Bank) |
2,01,000 |
By Salaries of Nurses |
65,600 |
||
|
|
|
|
|||
|
|
5,99,300 |
|
5,99,300 |
||
|
|
|
|
|
||
Donation of ₹10,000 received for Building Fund was wrongly included in the Subscriptions Account . A bill of medicines purchased during the year amounted to ₹12,800 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, 2018 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||||
|
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 7.59:
Question 32:
Following is the Receipts and Payments Account of You Bee Forty Club for the year ended 31st March, 2018:
|
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018 |
|||||
|
Dr. |
|
Cr. |
|||
| Receipts
|
₹ |
Payments |
₹ |
||
|
To Balance b/d (cash) To Donations |
1,50,000 |
By Salaries and Wages |
1,60,000 |
||
|
|
|
|
|||
|
|
6,90,000 |
|
6,90,000 |
||
|
|
|
|
|
||
Additional information :
(a) Outstanding Subscriptions for the year ended 31st March, 2018₹ 55,000.
(b) Outstanding Salaries and Wages₹ 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, 2018 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||||
|
Salaries and Wages |
1,60,000 |
|
Subscriptions |
3,50,000 |
|
||
|
Add: Outstanding |
40,000 |
2,00,000 |
Add: Outstanding for 2017-18 |
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 7.59:
Question 33:
From the following Receipts and Payments Account of Jaipur Sports Club , prepare Income and Expenditure Account for the year ended 31st March, 2018:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Answer:
Working Notes: Calculation of Interest Accrued on investment
|
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Page No 7.60:
Question 34:
Following is the Receipts and Payments Account of Delhi Football Club for the year ended 31st March ,2018:
|
RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March , 2018 |
|||||
|
Dr. |
|
Cr. |
|||
| Receipts |
₹
|
Payments
|
₹
|
||
|
To Opening Cash |
18,000 | By Building | 4,00,000 | ||
| To Donations for Building | 4,50,000 | By Project Expenses(Young Talent Search and Development) | 90,000 | ||
| To Donations | 50,000 | ||||
| To Government Grant (Young Talent Search and Development) |
1,00,000 | By Match Expenses By Match Furniture |
90,000 1,21,000 |
||
| To Life Membership Fees | 40,000 | By 10% Investments | 1,60,000 | ||
| To Match Fund | 80,000 | ( Purchased on 1st July,2017) | |||
| 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 Cash | 4,800 | ||
| (Book value ₹ 80,000) | By Bank (Young Talent | 10,000 | |||
| To Entrance Fees | 50,000 | Search and Dev | |||
| 3,000 | |||||
|
|
|
|
|||
|
|
9,54,000 |
|
9,54,000 |
||
|
|
|
|
|
||
Additional Information:
(i) During the year ended 31st March , 2018, the club had 550 members and each paying an annual subscription of ₹ 100.
(ii) Salaries Outstanding as at 1st April , 2017 were ₹ 10,000 and as at 31st March ,2018 were ₹ 5,000.
Prepare Income and Expenditure Account of the Club for the year ended 31st March , 2018.
Answer:
|
Books of Delhi Football Club |
|||||||
|
Income and Expenditure Account for the year ended March 31, 2018 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||||
|
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 7.60:
Question 35:
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 , 2018:
|
Particulars
|
₹
|
| Sports Fund as on 1st April, 2017 Sports Fund Investments Interest on Sports Fund Investments Donations for Sports Fund Sports Prizes awarded Expenses on Sports Events General Fund General Fund Investments Interest on General Fund Investment |
3,50,000
3,50,000 40,000 1,50,000 1,00,000 40,000 8,00,000 8,00,000 80,000 |
Answer:
|
Income and Expenditure Account
for the year ending March 31, 2018
|
|||
| Dr. |
|
Cr.
|
|
|
Expenditure
|
Amount
(₹)
|
Income
|
Amount (₹)
|
|
|
Interest on General Fund Investments |
80,000
|
|
|
|
|
||
|
Balance Sheet
as on March 31, 2018
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount (₹)
|
| Sports Fund |
4,00,000
|
Sports Fund Investment |
3,50,000
|
| General Fund |
8,00,000
|
General Fund Investment |
8,00,000
|
Working Notes:
WN1: Calculation of Sports Fund Balance
|
Particulars
|
Amount
(₹)
|
| Opening Balance in Sports Fund as on April 01, 2017 |
3,50,000
|
| Add: Interest on Sports Fund Investments |
40,000
|
| Add: Donation for Sports Fund |
1,50,000
|
| Less: Sports Prizes Awarded |
(1,00,000)
|
| Less: Expenses on Sports Events |
(40,000)
|
| Closing Balance of Sports Fundas on March 31, 2018 |
4,00,000
|
Page No 7.61:
Question 36:
Following is the summary of cash transactions of the Royal Club for the year ended 31st March, 2018:
|
RECEIPTS AND PAYMENTS ACCOUNT |
|||||
|
Dr. |
|
Cr. |
|||
| Receipts
|
₹ |
Payments |
₹ |
||
|
To Balance b/d (cash) |
31,900 | By Rent | 16,800 | ||
| To Entrance Fees | 25,500 | By Wages | 24,500 | ||
| To Subscriptions | 1,60,000 | By Electricity Charges | 7,200 | ||
| To Donations | 16,500 | By Honorarium | 43,500 | ||
| To Life Membership Fees | 25,000 | By Books | 21,300 | ||
| To Profit on Entertainment | 5,600 | By Office Expenses | 45,000 | ||
| By 3% Fixed Deposit | 80,000 | ||||
| (1st October, 2017) | |||||
| By Balance c/d (Cash at Bank) | 24,200 | ||||
| By Balance c/d (Cash in Hand) | 2,000 | ||||
|
|
|
|
|||
|
|
2,64,500 |
|
2,64,500 |
||
|
|
|
|
|
||
In the beginning of the year , the club possessed Books of ₹ 2,00,000 and Furniture of ₹ 85,000. Subscriptions in arrears in the beginning of the year amounted to ₹ 3,500 and at the end of the year ₹ 4,500 and six months Rent ₹ 6,000 was due both in the beginning of the year and at the end of the year.
Prepare Income and Expenditure Account of the club for the year ended 31st March , 2018 and ist Balance Sheet as at that date after writing off ₹ 5,000 and ₹ 11,300 on Furniture and books respectively.
Answer:
|
Books of Royal Club |
|||||||
|
Income and Expenditure Account for the year ended March 31, 2018 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (Rs) |
Income |
Amount (Rs) |
||||
|
Rent |
16,800 |
|
Entrance Fees |
25,500 |
|||
|
Less: Outstanding Rent in the beginning |
6,000 |
||||||