Question 33 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 33 Chapter 1 - Unimax Class 12 Part 1

33. The following is a summary of the cash transactions of a debating society for the year ended 31st March, 2021 :

Receipts	Amount	Payments	Amount
To Balance from the Last Year	319	By Rent and rates	168
To Subscriptions & Entrance Fees	1855	By Wages of Servants	245
To Donations	85	By Lighting	72
To Life membership Subscriptions	250	By Lecturer’s Fees	835
To Interest on Investments	94	By Purchase of Furniture	40
To Profit form Entertainment	42	By Office Expenses	448
		By Purchase of Rs. 500 Municipal Debentures	473
		By Cash at Bank c/d	342
		By Cash in Hand c/d	22
	2,645		2,645

At the beginning of the year the society owned Rs. 4,000 government securities which had cost Rs. 3,251 and furniture then valued at Rs. 870. There were living at that date thirty-two life members, each of whom had paid a subscription of Rs. 50, but of these two died during the year. Ordinary subscription in Arrear at the beginning of the year amounted to Rs. 35 and at the end of the year to Rs. 45 and six months rent (Rs. 60) was due both at the beginning and end of the year. Prepare the society’s Income and Expenditure Account for the year ended 31st March, 2021 and Balance Sheet as on that date. Rs. 75 is to be written off by way of furniture depreciation. Life membership subscriptions of living life members are held in a Life Membership Fund, But the Life membership subscription of a life member who dies is treated as the income of the year.

The solution of Question 33 Chapter 1 - Unimax Class 12 Part 1: 

Working Notes :

(1) Calculation of capital fund as on 1-4-2020.

Balance Sheet of M/s Debating Society
As on 31Mar., 2020.

Liabilities	Amount	Assets	Amount
Life Membership Fund (50 x 30)	42	Cash	319
Outstanding Rent	20	Govt. securities (Face value Rs. 4000)	3251
Capital fund (B/f)	1183	Furniture	870
		Outstanding Subscription	35
	4475		4475

(2) Calculation of Expenditure on Rent and rates for the year 2020-21.

Rent and Rates paid during the year	168
Add outstanding Rent as on 31-3-2021	60
Less outstanding as on 1-4-2020	60
	168

(3) Calculation of written down value of office Furniture As on 31-3-2021.

Furniture as on 1-4-2020	870
Add Purchase during 2020-21	40
	910
Less Depreciation charged during 2020-21	75
	835

(4) Income from subscription & Entrance fee for the year 2020-21

Subscription & Entrance fee received during 2020-21	1855
Add Outstanding subscription As on 31-3-13	45
Less Outstanding As on 31-3-13	35
	1865

Income and Expenditure account of M/s Debating Society
For the year ended on 31-3-2021.

Expenditure	Amount	Income	Amount
To Office expenditure	448	By subscriptions
To Rent & Rates	168	Entrance Fee	1865
To Wages of servant	242	By donation	85
To Lighting	72	By Interest on investment	94
To Lecturer’s fee	835	By profit from Entertainment	42
To Depreciation on Furniture	75	By life membership subscription of 2 members	100
To Excess of Income over expenditure (Surplus)	343
	2186		2186

Balance Sheet of M/s Literary Society
As on 31st Dec., 2012

Liabilities		Amount	Assets	Amount
Outstanding Rent		60	Cash	22
Life membership subscription (1-4-12)	1600		Cash at Bank	342
Less (Transfer to income Rs. 50 x 2 members) (Who died during 2020-21)	100		Outstanding Subscription	45
	1500		500, M-Debentures	473
Add Received during 2020-21	250	1750	Government Securities	3251
Capital Fund	2815		Furniture	835
Add Surplus	343	3158
		4968		4968

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• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

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