Question

Q. 30. Following is the Receipts and Payments Account of Citizen Club for the
year ended 31st March, 2018 :
Receipts
₹
₹
Payments
To Balance b/d
2,40,000 By Rent
To Subscriptions (including
(paid for 11 months)
1,76,000
10,000 for 2018-19)
5,80,000 By Insurance
3,000
To Life Membership Fee
25,000 By Salaries
2,64,000
To Interest on Investments
By Stationery purchased
60,000
(@ 7% p.a. for full year)
28,000 By Balance c/d
3,70,000
8,73,000
8,73,000
Prepare Income and Expenditure Account for the year ending 31st March, 2018
and the Balance Sheet as at that date after considering the following information:
(i) Subscription in arrear on 31st March, 2017 were $30,000 and on 31st March
2018 were 48,000.
(ii) Stock of stationery on 31st March, 2017 was 5,000 and on 31st March, 2018
14,000.
(iii). Insurance was paid on 1st January 2018 to run for one year.
[Ans. Surplus 1,08,250; Opening Capital Fund 6,75,000; Balance Sheet Total
8,34,250.]
6
275
ری​

Answer 1

Explanation:

ANSWER

(i) REVALUATION A/C

Dr. Cr.

Particulars Amount Particulars Amount

To Provision for Doubtful Debts 1700 By Prepaid advertisement Expenses 1200

To A's Capital

(revenue expense) 2100 By B's Capital

(personal expenses) 2000

By Loss transferred to:

- A's Capital a/c

- B's Capital a/c

- C's Capital a/c

300

200

100

3800 3800

(ii) PARTNER'S CAPITAL A/C

Dr. Cr.

Particulars A B C D Particulars A B C D

To Revaluation a/c

(personal) 2000 By Balance b/d 60000 40000 40000

To Revaluation a/c

(loss) 300 200 100 By Cash a/c 40000

To Balance c/d 61800 37800 39900 50000 By Creditors 10000

By revaluation expenses 2100

62100 40000 40000 50000 62100 40000 40000 50000

(iii) BALANCE SHEET

Dr. Cr.

Liabilities Amount Assets Amount

Capital a/cs:

- A

- B

- C

- D

61800

57800

39900

50000 Land and Building 50000

Bills Payable 10000 Plant and Machinery 40000

Creditors 30000

(-) D's Capital (10000) 20000 Furniture 30000

Stock 20000

Prepaid Advertisement

Expenses 1200

Debtors 30000

(-) Provision for (1700)

Doubtful debts

(+) Bills receivable 4000

dishonoured 32300

Bills receivable 20000

Bank (10000+40000-4000) 46000

239500 239500...............

Answer 2

these two photo contains the answer