CHAPTER - 14

ADDITIONAL PRACTICE QUETIONS SET

ANSWERS
Q.1. During the year ended 31st March, 2012, Sachin Cricket Club received subscriptions as follows:
(`)
For year ending 31st March, 2011 12,000
For year ending 31st March, 2012 6,15,000
For year ending 31st March, 2013 18,000
Total 6,45,000
There are 500 members and annual subscription is ` 1,500 per member.
On 31st March, 2012, a sum of ` 15,000 was still in arrears for subscriptions for the year ended 31st March,
2011.
Ascertain the amount of subscriptions that will appear on the credit side of Income and Expenditure Account
for the year ended 31st March, 2012. Also show how the items would appear in the Balance Sheet as on 31st
March, 2011 and the Balance Sheet as on 31st March, 2012.
Ans. Amount of subscription for the year 2011-12
Income & Expenditure Account (An extract) of Sachin Cricket Club
For the year ended 31st March, 2012
(`) (`)
By Subscription 7,50,000
(500 members × ` 1,500 per member)

Balance Sheet of Sachin Cricket Club as on 31st March 2011 (An extract)
Liabilities (`) Assets (`)
Subscription Receivable (15,000 + 12,000) 27,000

Balance Sheet of Sachin Cricket Club as on 31st March 2012 (An extract)
Liabilities (`) Assets (`) (`)
Unearned Subscription 18,000 Outstanding Subscription
of 2010-11 15,000
of 2011-12 ` (7,50,000 – 6,15,000) 1,35,000 1,50,000

Q.2. From the following information of M/s. Officers Sports Club (A non -profit organization) calculate (i) the total
cost of sports material consumed in the club and (ii) Sale value of sports material during the year 2014-15.
(`)
Opening balance of sports material as on 1-4-2014 56,800
Closing balance of sports material as on 31-3-2015 32,900
Sports material purchased in cash 23,500
Payment made to creditors of sports material 64,300
 Creditors for sports materials -
Opening 23,200
Closing 29,400
Out of the total sports material used during the year 40% was consumed by the club and the remaining was
sold at a profit of 20% on cost.
Ans.
(`)
Opening balance of sports material 56,800
Add: Purchases during the year (cash 23,500 + credit 70,500) 94,000
1,50,800
Less: Closing Stock 32,900
Sports material used 1,17,900
(i) Total cost of sports material consumed in the Club
40% of used material was consumed. 47,160
(i.e. 40% of 1,17,900)
(ii) Sale value of sports material
Cost of sports material sold (1,17,900-47,160) 70,740
Add: Profit @20% on cost 14,148
84,888

Working:
Calculation of Credit purchase of Sports Material
(`) (`)
To Bank 64,300 By Balance b/d 23,200
To Balance c/d 29,400 By Purchases (Balancing Figure) 70,500
93,700 93,700

Q.3. The following information of M/s. TT Club are related for the year ended 31st March, 2015:
(1)
As on 01.04.2014 As on 31.3.2015
Balances
(`) (`)
Stock of Sports Material 75,000 1,12,500
Amount due for Sports Material 67,500 97,500
Subscription due 11,250 16,500
Subscription received in advance 9,000 5,250
(2) Subscription received during the year ` 3,75,000
(3) Payments for Sports Material during the year ` 2,25,000
You are required to:
(A) Ascertain the amount of Subscription and Sports Material that will appear in Income & Expenditure
Account for the year ended 31.03.2015 and
(B) Also show how these items would appear in the Balance Sheet as on 31.03.2015.
Ans. Subscription for the year ended 31.3.2015
(`) (`)
Subscription received during the year 3,75,000
Less: Subscription receivable on 1.4.2014 11,250
Less: Subscription received in advance on 31.3.2015 5,250 (16,500)
3,58,500
Add: Subscription receivable on 31.3.2015 16,500
Add: Subscription received in advance on 1.4.2014 9,000 25,500
Amount of Subscription appearing in Income & Expenditure Account 3,84,000

Sport material consumed during the year end 31.3.2015:

(`)
Payment for Sports material 2,25,000
Less: Amounts due for sports material on 1.4.2014 (67,500)
1,57,500
Add: Amounts due for sports material on 31.3.2015 97,500
Purchase of sports material 2,55,000
Sports material consumed:
Stock of sports material on 1.4.2014 75,000
Add: Purchase of sports material during the year 2,55,000
3,30,000
Less: Stock of sports material on 31.3.2015 (1,12,500)
Amount of Sports Material appearing in Income & Expenditure Account 2,17,500

Balance Sheet of M/s TT Club For the year ended 31st March, 2015 (An extract)
Liabilities (`) Assets (`)
Unearned Subscription 5,250 Subscription receivable 16,500
Amount due for sports material 97,500 Stock of sports material 1,12,500

Q.4. Summary of receipts and payments of Bombay Medical Aid society for the year ended 31.12.2011 are as
follows:
Opening cash balance in hand ` 8,000, subscription ` 50,000, donation ` 15,000, interest on investments @
9% p.a. ` 9000, payments for medicine supply ` 30,000 Honorarium to doctor ` 10,000, salaries ` 28,000,
sundry expenses ` 1,000, equipment purchase ` 15,000, charity show expenses ` 1,500, charity show
collections ` 12,500.
Additional information:
1.1.2011 31.12.2011
Subscription due 1,500 2,200
Subscription received in advance 1,200 700
Stock of medicine 10,000 15,000
Amount due for medicine supply 9,000 13,000
Value of equipment 21,000 30,000
Value of building 50,000 48,000
 You are required to prepare receipts and payments account and income and expenditure account for the
year ended 31.12.2011 and balance sheet as on 31.12.2011.
Ans. Receipts and Payments Account of Bombay Medical Aid Society
for the year ended 31st December, 2011
Receipts (`) Payments (`)
To Cash in hand (opening) 8,000 By Medicine supply 30,000
To Subscription 50,000 By Honorarium to doctors 10,000
To Donation 15,000 By Salaries 28,000
To Interest on investment 9,000 By Sundry expenses 1,000
To Charity show collections 12,500 By Purchase of equipment 15,000
By Charity show expenses 1,500
By Cash in hand (closing) 9,000
94,500 94,500

Income and Expenditure Account of Bombay Medical Aid Society

for the year ended 31st December, 2011
Expenditure (`) Income (`)
To Medicine consumed 29,000 By Subscription 51,200
To Honorarium to doctors 10,000 By Donation 15,000
To Salaries 28,000 By Interest on investments 9,000
To Sundry expenses 1,000 By Profit on charity show:
To Depreciation on Show collections 12,500
Equipment 6,000 Less: Show expenses (1,500) 11,000
Building 2,000 8,000
To Surplus-excess of income over
expenditure 10,200
86,200 86,200

Balance Sheet of Bombay Medical Aid Society

as on 31st December, 2011
Liabilities (`) Assets (`) (`)
Capital fund: Building 50,000
Opening balance 1,80,300 Less: Depreciation (2,000) 48,000
Add: Surplus 10,200 1,90,500 Equipment 21,000
Subscription received in advance 700 Add: Purchase 15,000
Amount due for medicine supply 13,000 36,000
Less: Depreciation (6,000) 30,000
Stock of medicine 15,000
Investments 1,00,000
Subscription receivable 2,200
Cash in hand 9,000
2,04,200 2,04,200
Working Notes:
Subscription for the year ended 31st December, 2011: (`) (`)
Subscription received during the year 50,000
Less: Subscription receivable on 1.1.2011 1,500
Less: Subscription received in advance on 31.12.2011 700 (2,200)
47,800
Add: Subscription receivable on 31.12.2011 2,200
Add: Subscription received in advance on 1.1.2011 1,200 3,400
51,200
Purchase of medicine:
Payment for medicine supply 30,000
Less: Amounts due for medicine supply on 1.1.2011 (9,000)
21,000
Add: Amounts due for medicine supply on 31.12.2011 13,000
34,000
Medicine consumed:
Stock of medicine on 1.1.2011 10,000
Add: Purchase of medicine during the year 34,000
44,000
Less: Stock of medicine on 31.12.2011 (15,000)
29,000
Depreciation on equipment:
Value of equipment on 1.1.2011 21,000
Add: Purchase of equipment during the year 15,000
36,000
Less: Value of equipment on 31.12.2011 (30,000)
Depreciation on equipment for the year 6,000

Balance Sheet of Medical Aid Society

as on 1st January, 2011
Liabilities (`) Assets (`)
Capital fund (balancing figure) 1,80,300 Building 50,000
Subscription received in advance 1,200 Equipment 21,000
Amount due for medicine supply 9,000 Stock of medicine 10,000
Investments (` 9,000 x 100/9) 1,00,000
Subscription receivable 1,500
Cash in hand 8,000
1,90,500 1,90,500
Note: Donation has been credited directly to the income and expenditure account assuming that this has
been raised for meeting revenue expenditure. Alternatively, donation may be taken to have been raised for
meeting some capital expenditure and thus, be credited to capital fund.
Q.5. Smith Library Society showed the following position on 31st March, 2010:
Balance Sheet as on 31st March, 2010
Liabilities (`) Assets (`)
Capital fund 7,93,000 Electrical fittings 1,50,000
Expenses payable 7,000 Furniture 50,000
Books 4,00,000
Investment in securities 1,50,000
Cash at bank 25,000
Cash in hand 25,000
8,00,000 8,00,000

The receipts and payment account for the year ended on 31st March, 2011 is given below:
(`) (`)
To Balance b/d By Electric charges 7,200
Cash at bank 25,000 By Postage and stationary 5,000
Cash in hand 25,000 50,000 By Telephone charges 5,000
To Entrance fee 30,000 By Books purchased 60,000
To Membership subscription 2,00,000 By Outstanding expenses paid 7,000
To Sale proceeds of old papers 1,500 By Rent 88,000
To Hire of lecture hall 20,000 By Investment in securities 40,000
To Interest on securities. 8,000 By Salaries 66,000
By Balance c/d
Cash at bank 20,000
Cash in hand 11,300
3,09,500 3,09,500
You are required to prepare income and expenditure account for the year ended 31st March, 2011 and a
balance sheet as at 31s, March, 2011 after making the following adjustments:
Membership subscription included ` 10,000 received in advance. Provide for outstanding rent ` 4,000 and
salaries ` 3,000.
Books to be depreciated @ 10% including additions. Electrical fittings and furniture are also to be depreciated
at the same rate.
75% of the entrance fees is to be capitalized.
Interest on securities is to be calculated @ 5% p.a. including purchases made on 1.10.2010 for ` 40,000.
Ans. Smith Library Society Income and Expenditure Account
Dr. for the year ended 31st March, 2011 Cr.
Expenditure (`) (`) Income (`) (`)
To Electric charges 7,200 By Entrance fee 7,500
To Postage and stationary 5,000 (25% of ` 30,000)
To Telephone charges 5,000 By Membership subscription 2,00,000
To Rent 88,000 Less: Received in advance 10,000 1,90,000
Add: Outstanding 4,000 92,000 By Sale proceeds of old papers 1,500
To Salaries 66,000 By Hire of lecture hall 20,000
Add: Outstanding 3,000 69,000 By Interest on securities 8,000
To Depreciation (W.N.1) (W.N.2)
Electrical fittings 15,000 Add: Receivable 500 8,500
 Expenditure (`) (`) Income (`) (`)
Furniture 5,000 By Deficit- excess of
Books 46,000 66,000 expenditure over income 16,700
2,44,200 2,44,200

Balance Sheet of Smith Library Society as on 31st March, 2011

Liabilities (`) (`) Asset (`) (`)
Capital fund 7,93,000 Electrical fittings 1,50,000
Add: Entrance fees 22,500 Less: Depreciation (15,000) 1,35,000
8,15,500 Furniture 50,000
Less: Excess of expenditure Less: Depreciation (5,000) 45,000
over income (16,700) 7,98,800 Books 4,60,000
Outstanding expenses: Less Depreciation (46,000) 4,14,000
Rent 4,000 Investment:
Salaries 3,000 7,000 Securities 1,90,000
Membership subscription in Accrued interest 500 1,90,500
advance 10,000 Cash at bank 20,000
Cash in hand 11,300
8,15,800 8,15,800

Working Notes:
1. Depreciation (`) (`)
Electrical fittings 10% of ` 1,50,000 15,000
Furniture 10% of ` 50,000 5,000
Books 10% of ` 4,60,000 46,000

2. Interest on Securities
Interest @ 5% p.a. on ` 1,50,000 for full year 7,500
Interest @ 5% p.a. on ` 40,000 for half year 1,000 8,500
Less: Received (8,000)
Receivable 500

Q.6. The Receipts and Payments account of Trustwell Club prepared on 31st March, 2011 is as follows.
Dr. Receipts and Payments Account Cr.
Receipts (`) Payments (`)
To Balance b/d 450 By Expenses
To Annual income from subscription 4,590 (including payment for
Add: Outstanding of last year sports material ` 2,700) 6,300
received this year 180 By Loss on sale of furniture
4,770 (cost price ` 450) 180
Less: Prepaid of last year (90) 4,680 By Balance c/d 90,450
To Other fees 1,800
To Donation for building 90,000
96,930 96,930
 Additional information:
Trustwell club had balances as on 1.4.2010:
Furniture ` 1,800; investment at 5% ` 27,000; Sports material ` 6,660;
Balance as on 31.3.2011; subscription receivable ` 270;
Subscription received in advance ` 90; Stock of sports material ` 1,800.
Do you agree with above receipts and payments account? If not, prepare correct receipts and payments
account and income and expenditure account for the year ended 31st March, 2011 and balance sheet as on
that date.
Ans. Corrected Receipts and Payments Account of Trustwell Club
for the year ended 31st March, 2011
Receipts (`) (`) Payments (`)
To Balance b/d 450 By Expenses
To Subscription Annual income 4,590 (` 6,300 - ` 2,700) 3,600
Less: receivable as on 31.3.2011 (270) By Sports material 2,700
Add: Advance received for the year By Balance c/d
2011-2012 90 (cash in hand and at bank) 90,720
Add: Receivable as on 31.3.2010 180
Less: Advance received as on 31.3.2010 (90) 4,500
To Other fees 1,800
To Donation for building 90,000
To Sale of furniture 270
97,020 97,020

Income and Expenditure Account of Trustwell club

for the year ended 31st March, 2011
Expenditure (`) Income (`)
To Sundry expenses 3,600 By Subscription 4,590
To Sports material By Other fees 1,800
Balance as on 1.4.2010 6,660 By Interest on investment
Add: Purchases 2,700 (5% on ` 27,000) 1,350
Less: Balance as on 31.3.2011 (1,800) 7,560 By Deficit: Excess of expenditure
To Loss on sale of furniture 180 over income 3,600
11,340 11,340

Balance sheet of Trustwell club as on 31st March, 2011

Liabilities (`) Assets (`)
Capital fund 36,000 Furniture 1,800
Less: Excess of expenditure Less: Sold (450) 1,350
over income (3,600) 32,400 5% Investment 27,000
Building fund 90,000 Interest accrued on
Subscription received in advance 90 investment 1,350
Sports material 1,800
Subscription receivable 270
Cash in hand and at bank 90,720
1,22,490 1,22,490
 Balance Sheet of Trustwell Club as on 1st April, 2010
Liabilities (`) Assets (`)
Subscription received in advance 90 Furniture 1,800
Capital Fund (balancing figure) 36,000 Investment 27,000
Sports material 6,660
Subscription receivable 180
Cash in hand and at bank 450
36,090 36,090

Q.7. From the following Income & Expenditure A/c of Premium Sports Club for the year ended 31st March, 2012,
you are required to prepare Receipts & Payment A/c for the year ended 31st March, 2012 and Balance Sheet
as on that date:
Expenditure (`) Income (`)
To Salaries 1,18,800 By Subscriptions 4,20,000
To Rent 2,16,000 By Entrance Fee 1,20,000
To Printing & Stationery 28,000 By Profit on sale of Sports Material 5,500
To Postage & Telephone 41,600 By Interest on 8% Government Bonds 12,000
To Membership Fee 3,200 By Sale of Old Newspaper 11,600
To Electricity Charges 38,500
To Garden Upkeep 19,300
To Sports Material Utilized 62,800
To Repairs & Maintenance 18,700
To Depreciation 13,000
To Miscellaneous Expenses 5,700
To Surplus carried to Capital Fund 3,500
Total 5,69,100 Total 5,69,100
The following additional information is provided to you:
(a)
Balances as Balances as
on 01.04.2011 on 31.03.2012
Fixed Assets 2,40,000 ?
Bank Balance 8,300 ?
Stock of Sports Material 43,450 35,670
Outstanding Subscription 10,200 5,700
Subscription received in advance 2,400 4,900
8% Government Bonds 1,50,000 1,50,000
Outstanding Salaries 16,000 14,300
Outstanding Rent 21,000 15,000
Advance for Stationery 1,350 1,550
Outstanding Repairs & Maintenance 1,200 Nil
Creditors for purchase of Sports Material 3,400 4,200
(b) Some of Fixed Assets were purchased on 01.10.2011 and depreciation is to be charged @ 5% p.a.
(c) Sports Material worth ` 72,000 was purchased on credit during the year.
 (d) The Club became member of State Table Tennis Association on 01.01.2012 when it paid fee up to
31.12.2012.
(e) 50% of Entrance Fee is to be capitalized.
(f) Interest on 8% Government Bonds was received for two quarters only.
(g) A Fixed Deposit of ` 80,000 was made on 31st March, 2012.
Ans. Receipts and Payments Account of Premium Sports Club
for the year ended 31st March, 2012
Receipts (`) Payments (`)
To Cash at bank (opening) 8,300 By Salaries (W.N.6) 1,20,500
To Subscription (W.N.1) 4,27,000 By Rent (W.N.7) 2,22,000
To Entrance fee (W.N.2) 2,40,000 By Printing and stationary (W.N.8) 28,200
To Interest on 8% Government By Postage and telephone 41,600
Bond (W.N.3) 6,000 By Membership fee (W.N.9) 12,800
To Sale of old Newspaper 11,600 By Electricity charges 38,500
To Sale of Sports Material (W.N.4) 22,480 By Garden upkeep 19,300
By Payment to creditors for sports
material (W.N.5) 71,200
By Purchase of Fixed assets (W.N.10) 40,000
By Repairs and Maintenance (W.N.11) 19,900
By Misc. expenses 5,700
By Fixed Deposit made 80,000
By Cash at bank (closing) (bal. fig.) 15,680
7,15,380 7,15,380

Balance Sheet of Premium Sports Club as on 31st March, 2012

Liabilities (`) (`) Assets (`) (`)
Capital fund: Fixed Assets 2,40,000
Opening balance Add: Additions (W.N.10) 40,000
(W.N.12) 4,09,300 2,80,000
Add: Surplus 3,500 4,12,800 Less: Depreciation (13,000) 2,67,000
Entrance fee 1,20,000 Fixed Deposit Investments
Subscription received in in 8% 80,000
advance 4,900 Government Bonds 1,50,000
Outstanding expenses: Stock of sports material 35,670
Salary 14,300 Subscription receivable 5,700
Rent 15,000 29,300 Membership fee paid in
Creditors for purchase of advance 9,600
sports material 4,200 Prepaid printing and
stationary charges 1,550
Outstanding interest on
8% Govt. Bond 6,000
Cash at bank 15,680
5,71,200 5,71,200
Working Notes:
1. Subscription received during the year
(`) (`)
Subscription for the year ended 31st March, 2012 4,20,000
Less: Subscription receivable on 31.3.2012 5,700
Less: Subscription received in advance on 1.4.2011 2,400 (8,100)
4,11,900
Add: Subscription receivable on 1.4.2011 10,200
Add: Subscription received in advance on 31.3.2012 4,900 15,100
4,27,000

2. Entrance Fee received during the year (`)

Entrance fee as per Income and Expenditure Account 1,20,000
Add: Capitalised entrance fee (50%) 1,20,000
2,40,000

3. Interest on 8% Government Bond

(`)
Interest as per Income and Expenditure Account 12,000
Less: Outstanding interest for 2 quarters [12,000x (6/12)] (6,000)
6,000

4. Sales price of Sports Material sold

(`)
Stock of Sports Material on 1.4.2011 43,450
Add: Purchase of Sports Material during the year 72,000
1,15,450
Less: Stock of Sports Material on 31.3.2012 (35,670)
Cost of Sports Material consumed in the club and for sale 79,780
Less: Sports material consumed in the club (62,800)
Cost of Sports material sold 16,980
Sales Price of sports material sold = ` 16,980 + ` 5,500 = ` 22,480

5. Payment to creditors for Sports Material

(`)
Purchase of Sports Material 72,000
Less: Closing creditors for purchase of Sports Material on 31.3.2012 (4,200)
67,800
Add: Opening creditors for purchase of Sports Material on 1.4.2011 3,400
71,200
6. Salaries paid during the year
(`)
Salary as per Income and Expenditure Account 1,18,800
Less: Outstanding balance as on 31.3.2012 (14,300)
1,04,500
Add: Outstanding balance as on 1.4.2011 16,000
1,20,500

7. Rent paid during the year

(`)
Rent as per Income and Expenditure Account 2,16,000
Less: Outstanding balance as on 31.3.2012 (15,000)
2,01,000
Add: Outstanding balance as on 1.4.2011 21,000
2,22,000

8. Printing and Stationary paid during the year

(`)
Printing and stationary as per Income and Expenditure Account 28,000
Less: Prepaid balance as on 1.4.2011 (1,350)
26,650
Add: Prepaid balance as on 31.3.2012 1,550
28,200

9. Membership fee paid during the year

(`)
Membership fee as per Income and Expenditure Account 3,200
Add: Prepaid balance as on 31.3.2012 [(3,200/3) x 9] 9,600
12,800

10. Fixed Asset purchased during the year

(`)
Depreciation during the year 13,000
Less: Depreciation on Opening balance of fixed asset (5% of 2,40,000) (12,000)
Depreciation on new purchase of fixed asset during the year 1,000
 12 100 
Cost of asset purchased during the year  1,000    40,000
 6 5 

11. Repairs and Maintenance paid during the year

(`)
Repairs and Maintenance as per Income and Expenditure Account 18,700
Add: Outstanding balance as on 1.4.2011 1,200
19,900
12. Balance Sheet of Premium Sports Club as on 1st April, 2011
Liabilities (`) Assets (`)
Capital fund (Bal. fig.) 4,09,300 Fixed Assets 2,40,000
Subscription received in advance 2,400 Investments in 8% Govt. Bonds 1,50,000
Outstanding expenses: Stock of sports material 43,450
Salary 16,000 Subscription receivable 10,200
Rent 21,000 Prepaid printing and
Repairs and maintenance 1,200 stationary charges 1,350
Creditors for purchase of sports material 3,400 Bank 8,300
4,53,300 4,53,300
Note: It is assumed that Premium Sports Club has purchased all the sports equipment on credit basis
only.

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