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

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 include Rs. 300 received for year 2020 and Rs. 550 is still owing for year 2021.
(b) Subscription accrued for 2021 Rs. 2,400 and Rs. 260 for Stationery are outstanding.
(c) Entrance fees is 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 of 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 2012 15340
Add : Outstanding as on 31st Dec., 2012 260
Expenditure of stationery for the year 2012 15600
(2) Calculation of income from subscription for the year 2012.  
Subscription received during the year 2012 84500
Add : Outstanding as on 31st Dec, 2012 2400
Income from subscription for the year 2012 86900
(2) Calculation of income from the locker’s rent for the year 2012.  
Locker’s rent received during the year 2012 2500
Add: Outstanding as on 31st Dec., 2012 550
  3150
Less: Outstanding as on 1 Jan., 2012 300
Income from Locker’s rent 2750
(3) Calculation of capital fund on 1-1-2012  

Balance Sheet As on 1 Jan., 2012

Liabilities Amount Assets Amount
Capital fund (B/F) 41800 Cash 1500
    Outstanding locker’s 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, 2012

Particulars Amount Particulars Amount
To Rent 26000 By subscription 86900
To stationery 15600 By locker’s rent 2750
To Wages 26650    
To Repairs 4030    
To Miscellaneous expneses 7500    
To excess of income over expenditure 9870    
  89650   89650

Balance Sheet of Punjabi Bagh Club For the year ended 31.12.2012

Liabilities   Amount Assets Amount
Outstanding stationery expenses   260 Cash 11980
Pre received subscription   1500 O/s Subscription 2400
Capital Fund 41800   Outstanding Rent 550
Add Excess of Income over Expenditure 9870 54420 Billiard’s Table 19500
Special Subscription 2750 17250 Fixed Assets 39000
         
    73430   73430

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