PANCHAKSHARI S PROFESSIONAL ACADEMY PVT. LTD.

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Shannon Holmes
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1 1. From the following information, prepare Opening and Closing Balance Sheets: (subject to 10% depreciation) Furniture (subject to 10% depreciation) Stock of Sports Materials Prepaid Insurance Outstanding Subscription Outstanding Locker Rent Advance Locker Rent received Outstanding Rent for Godown 12% General Fund Investments Accrued Interest on above Cash Balance Bank Overdraft 31st March , 1, 31st March 2013? 1,? 3 Note: Entrance Fees received, Life Membership Fees received, Surplus from Income & Expenditure Account. It is the policy of the club to treat % of Entrance Fees and % of Life Membership Fees as of revenue nature. (10 Marks) SOLUTION 1 BALANCE SHEET AS AT 31ST MARCH 2012 Outstanding Rent Capital Fund (Balancing Figure) 1,35, Stock of Sports Materials Prepaid Insurance Outstanding Subscription 12% General Fund Investments Cash Balance 2, 1, 1,41, 1,41, BALANCE SHEET AS AT 31ST MARCH 2013 Outstanding Rent 1, Book Value Advance Locker Rent Less: Depreciation Bank Overdraft Furniture Cost Capital Fund: Less: Depreciations 1,35, Stock of Sports Materials Add: Entrance Fees [ x %] Prepaid Insurance Outstanding Subscription Add: Life Membership Fees [ x %] Outstanding Locker Rent 12% General Fund Investments Add: Surplus 1,75, Accrued Interest on 12% General Fund Investments 27,000 9,000 Cash Balance 3 1,8 1,8 2. The following is the Receipts & Payments Account of the Bombay Club for the year ending 31 st Dec., 2012 Dr. RECEIPTS & PAYMENTS ACCOUNT FOR THE YEAR 2012 Cr. To Balance b/f To Entrance Fees By Rent By Stationery, Expenses etc. 5, 3,068

2 To Subscriptions To Locker Rent To Special Subscriptions for Governor s party 16,0 17,0 By Wages By Billiards Table By Repairs and Renewals By Interest By Balance c/f 5,330 3, , 2,396 3,4 22, 22, Locker rents,, related to 2011 and is still owing: Rent 1, pertained to 2011 and 1, is still owing: stationery expenses etc., 312 related to 2011; still owing 364; subscriptions unpaid for ; special subscriptions for Governor s party outstanding. The club owned sports materials of the value 1 on 1 January, This was valued at 13, on 31 December, The club took a lone of in Treat Entrance Fees as of revenue nature. Required: Prepare the Income & Expenditure Account for 2012 and Balance Sheet as at 31 December (15 Marks) SOLUTION 2 INCOME & EXPENDITURE ACCOUNT For the year ending 31st December, 2012 To Rent Paid Less: O/s in the beg. Add: O/s at the end To Stationery, Expenses: Paid Less: O/s in the beg. Add: O/s at the end To Wages To Repairs and Renewals To Interest To Depreciation on sports Materials (1 13,) To Surplus Excess of income Over expenditure 5, 1, 3,0 1, 3, , , 3,120 5, , 2, By Entrance Fees By Subscriptions: Received Add: O/s at end By Locker Rents: Received Less: O/s in the beg. Add: O/s at the end 16, , ,848 18,848 BALANCE SHEET As at Expenses unpaid: Rent 1, Stationery 364 Special Subscriptions for Governor s party: Received 3,4 Add: Outstanding Loan Subscriptions Received in advance 1,664 Cash (or Bank) Balance Sports materials Billiards Table Subscriptions Outstanding Special Subscriptions due Locker Rent Outstanding Deficiency: On 1 January ,052 Less : Surplus ,396 13, 3, ,6 25,964 25,964 Working Note: Calculation of Opening Capital Fund/Deficiency. BALANCE SHEET AS AT Rent Outstanding Stationery, etc., Outstanding Loan 1, 312 Subscription Due Cash Sports Materials 1

3 Locker Rents Due Deficiency (Balancing Figure) 5,052 21,612 21, From the following Receipts and Payments Account of Tree Legal Aid Society and additional information, prepare Income and Expenditure Account for the year and Balance Sheet as at 31st March, 2013: To Balance To Subscriptions To Donations To Interest on Investments (10% p.a.) To Charity Show Receipts Additional information as on: Subscription due Subscription received in advance Stock of Court Fee Stamps Value of office equipment (Computer) Value of s SOLUTION ,000,000 By Salaries of Office Staff By Honorarium Legal advisor By Sundry Expenses By Stationary By Court Fee Stamps By Typewriters By Charity Show Expenses By Cash in hand,000 70,000 2,0 2, ,000 INCOME AND EXPENDITURE ACCOUNT For the year ended 31st March, 2013 To Salaries of Office Staff To Honorarium Legal Advisors To Sundry Expenses To Stationery To Court Fee Stamps: Opening Stock Add: Purchases 1 Less: Closing Stock To Depreciation on Computer [4 +,000] To Charity Show Expenses To Depreciation on [80,000 7] To Surplus t/f to Capital Fund Subscription received in Advance Capital Fund 5,39,000 Add: Surplus 70,000,000 By Subscriptions By Donations By Interest on Investments By Charity Show Receipts ,000 7 (15 Marks) 1,0 29,000,000 70,000 1,9 1,9 BALANCE SHEET AS AT 31ST MARCH, 2013 Cash in hand Subscription Due 6,09,000 Stock of Court Fee Stamps Office Equipment (Computer) Investment 70,000,000 4,00,000 7

4 6, 6, Working Notes: 1. BALANCE SHEET AS AT 31 ST MARCH, 2012 Subscription received in Advance Capital Fund (Bal. Fig.) 5,39,000 Cash in hand Subscription due Investment [,000 x /10] Office Equipment Stock of Court fee Stamps 1 4,00, ,000 5,4 5,4 2. SUBSCRIPTION ACCOUNT Particulars Particulars To Subscription Due A/c By A/c (Opening ) (Opening) To Income & Expenditure A/c 1,0 By Bank A/c (Bal. Fig.) To Adv. Subscription A/c (end) By Subscription Due A/c (end) 1,0 1,0 4. From the following Receipts and Payments A/c of Mumbai Club, prepare Income and Expenditure A/c for the year ended and its Balance Sheet as on that date: Cash in Hand Cash at Bank Donations Subscriptions Entrance Fees Interest on Investments Interest Received from Bank Sale of Old Newspaper Sale of Drama Tickets ,0 Salary Repairs Expenses Purchase of Furniture Misc. Expenses Purchase of Investments Insurance Premium Billiard Table Paper, Ink, etc. Drama Expenses Cash in Hand (Closing) Cash at bank (Closing) 1 2,6 7, 33,700 33,700 Information: a) Subscriptions in arrears for and Subscription in advance for , b) Insurance premium Outstanding, Misc. Expenses Prepaid, c) % of donation is to be capitalized, Entrance Fees are to be treated as revenue income, d) 8% Interest has accrued on Investments for five months, e) Billiard Table costing was purchased during the last year and 2 were paid for it. SOLUTION 4 INCOME AND EXPENDITURE ACCOUNT For the year ended 31 st December, 2012 To Salary To Repair Expenses To Misc. Expenses Less: Prepaid To Insurance Premium Add: Outstanding To Paper,ink,etc. To Drama expenses By Subscription 1 Add: Outstanding in beg. 0 12,0 Less: Advance at end 3 By Entrance Fees By Interest on Investment ( + ) By Sale of Drama Tickets By Interest received from Bank (15 Marks) 12, 1,0 0

5 To Surplus Excess of Income Over Expenditure 14,1 Outstanding Expenses Subscription in advance Capital Fund 3 Add: Surplus 14,1 Add: Donations 2, By Sale of Newspapers By Donation Less: Capitalized (%) 2, 1 2, 17,9 17,9 BALANCE SHEET OF MUMBAI CLUB AS AT 31 ST DECEMBER, ,6 Billiards table Furniture Prepaid Expenses (Misc.) Subscription receivable Investments Interest accrued Cash on hand 0 7, 2,6 53,0 53,0 Working Note: Calculation of Opening Capital Fund BALANCE SHEET OF MUMBAI CLUB AS AT 1 ST JANUARY, 2012 Creditors for Billiards Table Capital Fund (Balancing figure) 3 Billiards table Cash on Hand Prepare the income & Expenditure Account and the Balance Sheet from the following information: RECEIPTS AND PAYMENTS ACCOUNT OF TULSIAN CLUB, DELHI For the year ending on 31 st December, 2012 To Balance b/f (cash) To Subscriptions: , To Admission Fees To Life Membership subscription To Donations (on ) To Subscription for Tournament (on ) To Sale of old newspapers To Sale of old bats etc. To Proceeds of drama tickets To Sale of old furniture (costing ) To Interest on 12% General Investments To Interest on 12% Tournament Fund Investments To Subscription for Governor s Party To Prize Fund 1,025 2,1 1, By Upkeep of fields By Salaries By Drama Expenses By Newspapers By Books By Municipal Tax By Charity By 12% General Investments (on ) By 12% Tournament Fund Investments (on ) By Tournament Expenses By Bats, Balls etc. By Printing & Stationery By Furniture By Prizes By Balance c/f (Cash) , 1, ,115 3,725 3,4 1, Additional Information: a) There are members each paying an annual subscription of 5. are still in arrear, for the year b) Municipal taxes amounting to per year have been paid upto March 31, 2013 and are outstanding for salaries.

6 c) On the club owned building valued at, Stock of Bats and Balls 1,, Printing and Stationery, Cash at Bank, Books and Furniture 0. d) Write % off Bats and Balls (without considering sale), 25% off printing and stationery. e) Special subscription for governor s party outstanding. f) An admission fee to be treated as of revenue nature but Life Membership is to be treated as of Capital nature. (20 Marks) SOLUTION 5 INCOME & EXPENDITURE ACCOUNT OF TULSIAN CLUB For the year ending on 31 st December, By Subscription ( x 5) By Admission Fees 6 By Donations 4 By Sale of old newspapers 1 By Sale of old bats etc. By Proceeds of Drama tickets By Interest on General Invest. ( x 12/ x 5/12) Received 12.5 Accrued 12.5 To Upkeep of fields To Salaries paid 0 Add: Outstanding at end To Drama Expenses To Newspapers To Municipal Taxes Paid Add: Pre. In the beginning 10 Less: Prepaid at end 10 To Charity To Loss on sale of furniture To Printing & Stationery To Bats & balls consumed To Prize Exp. (1,115 1,080) To Surplus , 35 BALANCE SHEET OF TULSIAN CLUB AS AT 31 ST DECEMBER, 2012 Capital Fund: Cash in hand Add: Surplus 11,925 Cash at bank Outstanding Subscription: Add: Life Membership Subscription Tournament Fund: Add: Subscription Add: Interest on Tournament Fund Invest. [1 x 12% x 5/12] Less: Tournament Expenses Subscription for Governor s Party Received Add: Outstanding Outstanding Salaries Nil 1, 75 1, 3,4 13, For 2011 For 2012 Printing & Stationery: Add: Purchases Less: Charged Stock of Bats & Ball: Add: Purchases , 700 2, 1, Less: Charged Books: Add: Additions 12% Investments Furniture: Add: Additions Less: Sale Accrued Interest: On General Investments On Tournaments Fund Investments Outstanding subscription for Governor s Party , ,110 4, 25 3, , 0 7

7 Prepaid Municipal Taxes 10 17,510 17,510 Working Note: BALANCE SHEET OF TULSIAN CLUB AS AT 31 ST DEC., 2011 Capital Fund (balancing figure) 11,925 Cash in hand Cash at bank 1,025 O/s subscription (+ ) Printing & Stationery Stock of Bats & Balls Books Furniture Prepaid Municipal Taxes 1, ,925 11,925

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