Question 23 Chapter 1 – Unimax Class 12 Part 1 – 2021

Question 23 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 23 Chapter 1 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

23. From the following Receipts and Payments Account of Mumbai Club, prepare Income & Expenditure Account for the year ended 31st December 2021 and its Balance Sheet as on that date :

Receipts Amount Payments Amount
To Cash in Hand B/d 4,000 By Salary 2,000
To Cash at Bank b/d 10,000 By Payment for Billiard Table 8,000
To Donations 5,000 By Repair Expenses 500
To Subscriptions 12,000 By Purchase of Furniture 6,000
To Entrance Fees 1,000 By Miscellaneous Expenses 500
To Interest on Investments 100 By Purchase of Investments 6,000
To Interest Received from Bank 400 By Insurance Premium 200
To Sale of old Newspapers 150 By Paper, Ink. Etc. 150
To Sale of Drama Tickets 1,050 By Drama Expenses 500
    By Cash in Hand c/d 2650
    By Cash at Bank c/d 7200
  33,700   33,700

Additional Information:
1. Subscriptions in arrear for 2021, Rs. 900 and subscriptions in advance for 2022, Rs. 350.
2. Insurance premium outstanding Rs. 40.
3. Miscellaneous expenses prepaid Rs. 90.
4. 50% of donations to be capitalized.
5. 8% interest has accrued on investments for five months.
6. Entrance fees are to be treated as revenue income.
7. Billiard table costing Rs. 30,000 was purchased during the last year and Rs. 22,000 were paid for it in the last year.

The solution to Question 23 Chapter 1 – Unimax Class 12 Part 1:

Working Notes : 

(1) Calculation of expenditure on Miscellaneous Expenses for the year ended 31/12/12.  
Payment made during the year 2021 500
Less: Prepaid as on Dec. 31, 2021 90
Expenditure on Miscellaneous expenses 410
(2) Calculation of expenditure on Insurance Premium for the year ended 31 Dec. 2012.  
Payment made during the year 2021 200
Add: Outstanding as on 31st Dec. 2021 40
Expenditure on insurance premiums for the year 240
   
Amount received for subscription during the year 12000
Add: Outstanding as on 31st Dec. 2021 900
  12900
Less: Received in advance as on 31.12.2021 350
Income from a subscription for the year 2021 12550
   
(4) Calculation of Income from interest on investments for the year ended 31st Dec. 2021  
Interest received during the year 2021 100
Add: Outstanding as on 31st Dec. 2021 200
Income from interest on investment for the year 2021 300
(5) Calculation of opening capital fund as on 1/1/2021:-  

Mumbai Club Balance Sheet As on 1 Jan. 2021

Liabilities Amount Assets Amount
Creditors for Billiard Table 8,000 Cash 4,000
Capital fund (B/F) 36,000 Bank 10,000
    Billiard Table 30,000
  44,000   44,000

In the books of Mumbai Club Income and Expenditure account for the year ended on Dec. 31, 2021

Particulars Amount Particulars Amount
To Salary 2,000 By donations 2,500
To Repair expenses 500 By Subscription 12,550
To Miscellaneous expenses 410 By entrance Fees 1,000
To Insurance premium 240 By interest on investment 300
To paper, Ink etc. 150 By interest received from Bank 400
To drama expenses 500 By sale of old newspaper 150
To Excess of Income over Expenditure 14,150 By sale of drama tickets 1,050
  17,950   17,950

Balance Sheet of Mumbai Club For the year ended 31.12.2021

Liabilities Amount Assets Amount
Donations   2,500 Cash 2650
Pre received Subscription   350 Bank 7200
Outstanding Insurance     Furniture 6000
Premium   40 Investment 6000
Capital Fund 1/1/2012 36,000   Outstanding subscription 900
Add: Excess of income over expenditure 14,150 50,150 Prepaid Miscellaneous Expenses 90
      Accrued Interest 200
      Billards Table 30,000
  53040   53040

This is all about the Question 23 Chapter 1 – Unimax. You can check out the following article to better understand:

Not-for-Profit Organisations – Meaning and Overview

You Can also read all the above articles in Hindi on our Hindi Website

Not-for-Profit Organisations – Meaning and Overview – In Hindi

Thanks, Please Like and share with your friends  

Comment if you have any doubt in Question 23 Chapter 1 – Unimax.

Also, Check out the solved question of all Chapters: –

Accountancy – Unimax Class 12 Part 1 – 2021 – Solution.

Chapter No. 1 – Accounts of Non-Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Basic Concepts)

Chapter No. 3 – Partnership Accounts – II (Goodwill)

Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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

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