Question 25 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 25 Chapter 1 – Unimax Class 12 Part 1

25. The following is the Receipts and Payments Account for the Punjabi Bagh Club for the year ended on 31st December 2021

Receipts	Amount	Payments	Amount
To balance B/d	1,500	By Rent	26,000
To Entrance Fees	2,750	By Stationery	15,340
To Subscriptions: 2020	1,000	By Wages	26,650
2021	84,500	By Billiard Table	19,500
2022	1,500	By Repairs	4,030
To Locker’s Rent	2,500	By Miscellaneous Expenses	7,500
To Life membership fees	17,250	By Balance c/d	11,980
	1,11,000		1,11,000

The following adjustments are to be made :
(a) Locker’s Rent includes Rs. 300 received for the year 2020 and Rs. 550 is still owing for the year 2021.
(b) Subscription accrued for 2021 Rs. 2,400 and Rs. 260 for Stationery are outstanding.
(c) Entrance fees are to be capitalized. Life membership fees should also be capitalized.
(d) The club’s other Assets on 1.1.2021 are Rs. 39,000.
From the above information, prepare an Income and Expenditure A/c for the year ending on 31st Dec. 2021 and a Balance Sheet as on that date.

The solution to Question 25 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :

(1) Calculation of expenditure on stationery for the year ended 31st Dec. 2012 :
Expenditure: Payment made for the year 2021	15340
Add: Outstanding as on 31st Dec. 2021	260
Expenditure of stationery for the year 2021	15600
(2) Calculation of income from the subscription for the year 2021.
Subscription received during the year 2021	84500
Add: Outstanding as on 31st Dec 2021	2400
Income from the subscription for the year 2021	86900
(2) Calculation of income from the locker’s rent for the year 2021.
Locker’s rent received during the year 2021	2500
Add: Outstanding as on 31st Dec. 2021	550
	3150
Less: Outstanding as on 1 Jan. 2021	300
Income from Locker’s rent	2750
(3) Calculation of capital fund on 1-1-2021

Balance Sheet As on 1 Jan. 2021

Liabilities	Amount	Assets	Amount
Capital fund (B/F)	41800	Cash	1500
		Outstanding locker rent	300
		Outstanding subscription	1000
		Fixed Assets	39000
	41800		41800

Income and Expenditure account on Punjabi Bagh Club For the year ended on Dec. 31, 2021

Particulars	Amount	Particulars	Amount
To Rent	26,000	By subscription	86,900
To stationery	15,600	By locker’s rent	2,750
To Wages	26,650
To Repairs	4,030
To Miscellaneous expenses	7,500
To excess of income over expenditure	9,870
	8,9650		89,650

Balance Sheet of Punjabi Bagh Club For the year ended 31.12.2021

Liabilities		Amount	Assets	Amount
Outstanding stationery expenses		260	Cash	11,980
Pre received subscription		1,500	O/s Subscription	2,400
Capital Fund	41,800		Outstanding Rent	550
Add Excess of Income over Expenditure	9,870	54,420	Billiard’s Table	19,500
Special Subscription	2,750	17,250	Fixed Assets	39,000

		73430		73430