Question 22 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 22 Chapter 1 – Unimax Class 12 Part 1

22. The following is the Receipts and Payments Account for the Indian Gymkhana for the year ended 31st December 2021 :

Receipts	Amount	Payments	Amount
To Donations	50,000	By Buildings	40,000
To Life-membership Fees	1,500	By Expenses of Quadrangular Matches	900
To Entrance Fees	2,500	By Furniture	2100
To Quadrangular Match	10,000	By Salaries	1,800
Fund Receipts		By Expenses on Tennis, etc.	1,140
To Subscription (including Rs. 100 for 2020)	3,200	By Insurance Paid (for1year upto 30th June 2022)	360
To Interest	200	By Gardening expenses	170
To Sale of Scrap	900	By Printing & Stationery	80
To Sundry Receipts	100	By Postage etc.	200
		By Sundries.	150
		By Investments at Cost.	18,000
		By Balance c/d	3,500
	68,400		68,400

Donations, Life membership fees and entrance fees are to be treated as capital receipts and to be merged into the capital fund.
Subscriptions for 2021 amounting to Rs. 300 are outstanding and unpaid. Outstanding salaries for December 2021 are Rs. 170, Rs. 200 is the amount of interest accrued on investments.
Prepare the Income & Expenditure Account of the Indian Gymkhana for the year ended 31st December 2021 and the Balance Sheet as on that date.

The solution to Question 22 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :

(1) Calculation of expenditure on the salaries for the year 2012:-	Rs.
Salaries as per Receipts and payment a/c	1800
Add: Outstanding as on 31st Dec. 2012	170
Expenditure on salaries for the year 2012	1970
(2) Calculation of Income from the subscription for the year 2012:-
Amt. of subscriptions received during the year 2012	3200
Add: Outstanding as on 31st Dec. 2012	300
Less: Pre received as on 31.12.2012	100
Income from subscriptions during the year 2012	3400
(3) Calculation of Income from interest for the year 2012:-
Interest received during the year 2012	200
Add: Outstanding as on 31st Dec. 2012	200
Income from Interest during the year 2012	400

In the books of Indian Gymkhana Income and Expenditure account For the year ended 31-12-2012

Particulars	Amount	Particulars	Amount
To Salaries	1970	By Subscriptions	3400
To expenses on Cricket and Tennis etc.	1140	By Interest	400
To insurance Charges (360 x 6/12)	180	By Sundry receipt	100
To Gardening	170	By Sale of Scrap	900
To printing and Stationery	80
To Postage	200
To Sundries	150
To Excess of Income over Expenditure	910
	4,800		4,800

Balance Sheet of Indian Gymkhana As on 31.12.2015

Liabilities		Amount	Assets	Amount
Pre received		100	Building	40000
Subscription			Cash	3500
Outstanding Salaries		170	Outstanding Subscription	300
Capital Fund	Nil		Outstanding Interest	200
Add: Donations	50,000		Prepaid Insurance522	180
Add: Life membership fee	1500		Investments	18000
Add: Entrance fee	2500		Furniture	2100
Add: Surplus	910
Match Fund	10000
		64280		64280