Question 24 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 24 Chapter 1 – Unimax Class 12 Part 1

24. The following particulars relate to Madura Club for the year ending 31st December 2021

Receipts		Amount	Payments	Amount
To balance B/d		600	By Salaries	1,245
To Subscription			By Stationery	240
Arrear	24		By Rates and Taxes	360
Current	1,266		By Telephone	60
Advance	48	1,338	By Investments	750
To Profit from Canteen		900	By Advertisements	105
To General Incomes		45	By Postage	100
To Sale of old Newspapers		112	By Sundries.	350
To Dividends		485	By Balance c/d	270
		3,480		3,480

Prepare an Income and Expenditure Account and a Balance Sheet after making the following adjustments
1. There are 450 members each paying Rs. 3 as an annual subscription. Rs. 27 being in arrear for 2020 at the beginning of this year.
2. Stock of stationery on 1.1.2021 was Rs. 30 and on 31.12.2021 Rs. 54.
3. Cost of building is Rs. 6,000. Depreciation it by 5%.

The solution of Question 24 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :

(1) Calculation of expenditure on stationery for the year 2012 :
Payment made for stationery during the year	240
Add: Stock of stationery as on 1-1-21	30
Less: Stock of stationery as on 31-12-21	216
Expenditure of stationery for the year 2021
(2) Calculation of total income from subscriptions for the year 2012. No. of members 450
Subscription paid by one member	3
Total subscription to be received	450 x 3
	= 1350
Subscriptions received during the year	1266
Add: Outstanding at the end on 31st Dec. 2021(1350-1266)	84
Income from a subscription for the year 2021	1350
(3) Calculation of capital fund on 1-1-2021

Mumbai Club Balance Sheet As on 1 Jan. 2021

Liabilities	Amount	Assets	Amount
Capital fund (B/F)	6657	Cash	600
		Building	6000
		Outstanding subscription	27
		Stock of Stationery	30
	6657		6657

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

Particulars	Amount	Particulars	Amount
To Salary	1245	By subscription	1350
To stationery	216	By profit from the canteen	900
To Rates and taxes	360	By general income	45
To Telephone	60	By sale of old newspaper	112
To Advertisement	105	By dividend	485
To Postage	350
To sundries
To depreciation On Building @ 5%	300
To excess of income over expenditure	156
	2892		2892

Balance Sheet of Madura Club For the year ended 31.12.2021

Liabilities		Amount	Assets		Amount
Capital	6657		Cash		270
Add Excess of income over expenditure	156	6813	Investment		750
Pre received subscription		48	Building	6000
			Less depreciation @ 5%	300	5700
			Stock of stationery		54
			Outstanding Subscription (84+3)		87
		6861			6861