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M.478 An Aid to Accountancy—CBSE XII

Investments A/c (` 30,000 – ` 20,000) ...Dr. 10,000
To Revaluation A/c 10,000
(Being remaining half Investments valued at ` 30,000)
Revaluation A/c ...Dr. 10,000
To X’s Capital A/c 6,000
To Y’s Capital A/c 4,000
(Being the gain (profit) on Revaluation transferred to old partners
in their old profit-sharing ratio)

14. INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ended 31st March, 2018 Cr.
Expenditure ` Income `
To Salary 11,000 By Subscriptions 11,000
Less: For 2016–17 1,000 10,000 Less: Outstanding in the Beginning 800
To Office Expenses 4,400 10,200
Less: For 2018–19 1,000 3,400 Add: Outstanding at the end 900 11,100
To Stationery: By Locker Rent 2,000
Opening Stock 3,000 By Sale of Old Newspapers 2,000
Add: Purchases 700 By Entrance Fee 5,000
3,700 By General Donation 4,000
Less: Closing Stock 1,000 2,700 By Interest on Fixed Deposit:
To Loss on Sale of Sports Material 2,000 Received 400
(` 5,000 – ` 3,000) Accrued 400 800
To Depreciation on: By Deficit 4,500
Building 5,000 (i.e., Excess of Expenditure over Income)
Furniture [10/100 (` 20,000 + ` 5,000)] 2,500
Sports Equipments (Note 1) 2,800
[10/100 (` 14,000 + ` 6,000 + ` 8,000)]
To Tournament Expenses 1,000
(` 16,000 – ` 15,000)
29,400 29,400
Notes:
1. Billiards Table has been treated as part of Sports Equipment.
2. Entrance Fees is of revenue nature.
3. Excess tournament expenses have been debited to Income and Expenditure Account.
4. Legacy donation is capitalised being donation for specific purpose.
15. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)

(i) Realisation A/c ...Dr. 20,000
To Bank A/c 20,000
(Being the creditor Mohan paid off)
(ii) Bank A/c ...Dr. 4,000
To Realisation A/c 4,000
(Being the balance paid by Sohan)
(iii) Realisation A/c ..Dr. 10,500
To Bharat’s Capital A/c 10,500
(Being an unrecorded liability paid by Bharat)
(iv) Bank A/c ...Dr. 64,000
To Realisation A/c 64,000
(Being the debtors realised)