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M.384 An Aid to Accountancy—CBSE XII
14. How will be the following items dealt while preparing the Income and Expenditure
Account of Young India Club for the year ending on 31st March, 2018 and Balance
Sheet as on that date?
Particulars 1st April, 2017 (`) 31st March, 2018 (`)
Subscription Due 38,000 28,000
Subscription Received in Advance 11,200 20,800
Outstanding Salaries 60,000 36,000
Prepaid Salaries 20,000 12,000
Amount due to Suppliers of Sports Materials 60,000 36,000
Advance to Suppliers of Sports Materials 20,000 12,000
Stock of Sports Materials 60,000 28,000
Additional Information:
(i) During the year ended 31st March, 2018, payment made to suppliers of Sports
Materials was ` 2,16,000 and cash purchases of sports materials amounted to
10% of credit purchases.
(ii) Subscription received during the year was ` 5,95,600.
(iii) Salaries paid during the year was ` 2,16,000. (6)
15. Pass necessary Journal entries for the following transactions on the dissolution of the
firm of A and B after the various assets (other than cash) and outside liabilities have
been transferred to Realisation Account:
(i) A agreed to pay his wife’s loan of ` 20,000.
(ii) A debtor whose debt of ` 8,000 was written off as bad in the books paid ` 7,500 in
full settlement.
(iii) Sundry Assets were of ` 1,17,000. B is to take some Sundry Assets at ` 72,000
(being 10% less than book value). A is to take remaining Sundry Assets at 80% of
the book value.
(iv) C’s Loan of ` 10,000 was paid along with accrued interest of ` 200 (not yet recorded).
(v) A agreed to take over the responsibility of completing dissolution at an agreed
remuneration of ` 3,000 and to bear all realisation expenses. Actual realisation
expenses amounted to ` 4,000 were paid by A out of his private funds.
(vi) Loss on realisation ` 9,400 was divided between A and B in 3 : 2 ratio.
Or
A, B and C were equal partners. On 31st March, 2018, their Balance Sheet stood as:
Liabilities ` Assets `
Creditors 50,400 Cash 3,700
Reserve 12,000 Stock 20,100
Capital A/cs: Debtors 62,600
A 30,000 Investments 16,000
B 25,000 Furniture 6,500
C 15,000 70,000 Building 23,500
1,32,400 1,32,400