balance sheet of A B and C who were sharing profits in proportion 2 their capitals To stood as follows 1st april 2018:
liabilities
sundry creators 20000
outstanding expenses 2000
Answers
Answer:
Income and Expenditure Account for the year ended 31
st
March, 2018
Expenditure Rs. Income Rs.
To Expenses 20,000 By Subscriptions(21,000+6,000) 27,000
To Interest 4,000 By Locker rent(7,000−2,400) 4,600
To Misc. Expenses 4,700 By Sale proceeds of old newspapers 1,000
To Surplus 12,900 By Misc. income 9,000
41.600
41,600
Balance Sheet as at 31
st
March, 2018
Liabilities
Amount(Rs.) Assets Amount(Rs.)
Capital fund
Land and Building 1,90,000
Ba. as on 1.4.2017 1,06,200
Subscription receivable (2017) 1,800
Add: Entrance fee 38,000
(3,800−2,000)
Add: Surplus 12,900 1,57,100
Loan
40,000 Cash in hand 18,300
Creditors
10,000
Outstanding expenses (2017)(14,000−12,000)
2,000
Subscription received in advance
1,000
2,10,100
2,10,100
Note: Entrance fees have been capitalized in the given solution.