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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:
|
(₹) |
|
(₹) |
||
| 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 (₹) |
Payments |
Amount (₹) |
||
| 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 ₹ 10,000; Subscriptions ₹ 60,000; Donations ₹ 10,000.
Payments: Rent ₹ 15,000; Postages ₹ 1,000; Newspapers and Magazines ₹ 8,000; Investments ₹ 30,000; Stationery ₹ 4,000; Entertainment Expenses ₹ 3,000; Miscellaneous Expenses ₹ 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
(₹)
|
Payments
|
Amount
(₹)
|
||
| 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 |
(₹) |
Payments |
(₹) |
|
| 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 (₹) |
Payments |
Amount (₹) |
||
| 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 |
(₹) |
Particulars |
(₹) |
|
| 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 (₹) |
Payments |
Amount (₹) |
||
| 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 = ₹ 3,32,000
Total Payments = ₹ 2,37,600
Cash in Hand = ₹ 24,000
| Cash at Bank | = | Total Receipts – (Total Payments + Closing Balance of Cash) |
| = | ₹ [3,32,000 – 2,61,600] = ₹ 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:
|
(₹) |
|
(₹) |
||
| 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 | ​? | |
Answer:
|
Books of Evergreen Club |
|||||||
|
Receipts and Payments Account for the year ended March 31, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Receipts |
Amount (₹) |
Payments |
Amount (₹) |
||||
|
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 ?
| ₹ | |
| 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. (₹)
|
Cr. (₹) |
Case II
|
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 |
|
|
|
|
|
​
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.
(₹) |
Cr. (₹) |
| 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 (₹) |
Assets |
Amount (₹) |
|
|
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
|
₹
|
| 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 (₹) |
Assets |
Amount (₹) |
|
|
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 (₹) |
Income |
Amount (₹) |
||
|
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 ₹ 6,00,000. The construction work is in progress and has not yet completed. Capital Fund as at 31st March, 2018 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, 2018 is ₹ 10,00,000 and Capital Fund as at 31st March, 2018 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, 2018 is ₹ 10,00,000, and Capital Fund as at 31st March, 2018 is ₹ 20,00,000. Donation Received for Pavilion on 1st January, 2019 is ₹ 5,00,000.
Answer:
Case 1
|
Balance Sheet as on March 31, 2019 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Capital Fund |
20,00,000 |
Pavilion Work-in-Progress |
6,00,000 |
|
|
|
|
|
Case 2
|
Balance Sheet as on March 31, 2019 |
||||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
|
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 (₹) |
Assets |
Amount (₹) |
|
|
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 ₹ 1,00,000.
Case II During the year ended 31st March, 2019, 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
|
Income and Expenditure Account
for the year ended March 31, 2019
|
|||||
|
Dr.
|
|
Cr. |
|||
|
Expenditure
|
Amount
(₹)
|
Income
|
Amount
(₹)
|
||
|
|
|
Entrance Fees
|
1,00,000
|
||
|
|
|
|
|
||
Case 2
|
Income and Expenditure Account for the year ended March 31, 2019 |
|||||
|
Dr. |
|
Cr. |
|||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
||
|
|
|
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 ₹ 4,20,000. These subscriptions include ₹ 14,000 received for the year ended 31st March, 2018. On 31st March, 2019, subscriptions due but not received were ₹ 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 (₹) |
Income |
Amount (₹) |
|||
|
|
|
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: | ₹ | ₹ |
| 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 ₹ 200; ₹ 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 (₹) |
Income |
Amount (₹) |
||
|
|
|
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 ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2018 and ₹ 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 ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 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, 2019.
Answer:
|
Statement of Subscription for the year ended March 31, 2019 |
|
|
Particulars |
Amount (₹) |
|
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:
| ₹ | ||
| 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 – ₹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – ₹ 10,000.
Answer:
|
Particulars |
Amount (₹) |
|
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 | ₹ | |
| 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 (₹) |
|
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 (₹) |
|
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 (₹) |
|
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 (₹) |
|
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 (₹) |
|
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:
| ₹ | ||
| (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 ₹ 400 for the year ended 31st March, 2018, ₹ 1,200 for the year ended 31st March, 2020 and ₹ 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 (₹) |
|
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?
| ₹ | |
| 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 ​₹ 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 |
2,250 |
Subscriptions Outstanding |
3,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
|
Subscription received in Advance |
1,350 |
Subscriptions Outstanding |
3,750 |
|
|
|
|
|
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 ₹ 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, 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 (₹) |
Particulars |
Amount (₹) |
||
|
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
(₹) |
31st March, 2019 (₹) |
| Subscription in Arrears | 20,000 | 18,000 |
|
Subscription in Advance
|
13,000
|
11,000
|
In the year ending 31st March, 2019, subscription received were ₹ 2,10,000 (including ₹ 6,000 of arrears from previous year) and subscription arrears of previous year were written off ₹ 4,000.
Answer:
|
Dr. |
Subscriptions A/c |
Cr. |
||||
|
Date |
Particulars |
Amount (₹) |
Date |
Particulars |
Amount (₹) |
|
|
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
(₹) |
31st March, 2019 (₹) |
| 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 ​​₹ 60,80,700.
Answer:
|
Statement of Medicine Consumed during the year ended 31st March, 2019 |
|
|
Particulars |
Amount (₹) |
|
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: | ₹ |
| 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 – ₹5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250. | |
| (ii) | Stock of Stationery in Hand on 1st April, 2018 – ₹ 1,500; Payment made for Stationery during the year ended 31st March, 2019 – ₹ 5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250. | |
| ₹ | ||
| (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 (₹) |
|
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 (₹) |
|
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 (₹) |
|
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:
| ₹ | |
| 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 (₹) |
|
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:
| ₹ | |
| 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 (₹) |
|
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 | (₹) | ||
| (i) | Sports material sold during the year (Book Value ₹ 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 | ₹ | Payments | ₹ | |
|
|
By Payments for Sports Material | 1,40,000 | ||
| BALANCE SHEET (AN EXTRACT) as at 1st April, 2018 |
||||
|
Liabilities
|
₹ |
Assets |
₹ | |
|
|
||||
| Creditors for Sports Materials | 6,000 | Sports Materials | 8,000 | |
Additional information :
Sports Materials in Hand on 31st March, 2019 – ₹ 22,000.
Answer:
|
Income and Expenditure Account for the year ended March 31, 2019 |
||||||
|
Dr. |
|
Cr. |
||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
|||
|
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 (₹) |
Income |
Amount (₹) |
||
|
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:
​How 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 | ₹ |
Payments |
₹ | |
|
|
​By Payments for Medicines | 1,50,000 | ||
|
|
|
|||
Additional information :
| As at 1st April, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| 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 (₹) |
Income |
Amount (₹) |
|||
|
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 (₹) |
Assets |
Amount (₹) |
|
Creditors for Medicines |
40,000 |
Stock of Medicines |
50,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Creditors for Medicines |
60,000 |
Stock of Medicines |
75,000 |
|
|
|
|
|
Page No 1.62:
Question 29:
​How are the following dealt with while preparing the final accounts of a sports club for the year ended 31st March, 2019?
| 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 31st March, 2018 (₹) |
As at 31st March, 2019 (₹) |
|
| 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 (₹) |
Income |
Amount (₹) |
|||
|
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 (₹) |
Assets |
Amount (₹) |
|
Creditors for Sport Materials |
7,000 |
Stock of Sport Materials |
20,000 |
|
|
|
|
|
|
Balance Sheet as on March 31, 2019 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
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 ​₹ |
|
| 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 ​₹ 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 (₹) |
Income |
Amount (₹) |
||
|
Sports Material Consumed |
92,800 |
|
|
||
|
|
|
|
|
||
|
Balance Sheet as on March 2018 |
|||
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
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 (₹) |
Assets |
Amount (₹) |
|
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 (₹) |
|
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 (₹) |
Income |
Amount (₹) |
||
|
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 ₹ 60,000. Half of this furniture is sold for ₹ 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 (₹) |
Date |
Particulars |
Amount (₹) |
||
|
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 (₹) |
Income |
Amount (₹) |
||
|
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 (₹) |
|
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 ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 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 ₹ 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 (₹) |
Date |
Particulars |
Amount (₹) |
||
|
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 (₹) |
|
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 ₹ 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:
| ₹ | |
| 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 (₹) |
|
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 | ₹ 4,600 | ₹ 6,300 |
| Advance Locker Rent | ₹ 3,000 | ₹ 4,000 |
Locker Rent received during the year ended 31st March, 2019 – ₹ 52,000.
Answer:
|
Income and Expenditure Account |
||||||
|
Dr. |
for the year ended 31st March, 2019 |
Cr. |
||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
|||
|
|
|
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 | ₹ | Payments | ₹ | ||
| To Balanceb/d (cash) | 1,80,000 |
By Salaries |
4,80,000​ | ||
| 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 ₹ 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 (₹) |
Income |
Amount (₹) |
||
|
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 | ₹ | Payments | ₹ | ||
| 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 ₹ 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, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹) |
||||
|
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 | ₹ | Payments | ₹ | ||
| 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 – ₹ 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, 2019 |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Expenditure |
Amount (₹) |
Income |
Amount (₹)< | ||||