Question 26 Chapter 1 – Unimax Class 12 Part 1 – 2021

Question 26 Chapter 1 – Unimax Class 12 Part 1 – 2021

26. From the following information and Receipts and Payments Account of Krishna Nagar Club, prepare an Income and Expenditure Account for the year ending 31st December, 2012 and a Balance Sheet as on that date :

Receipts	Amount	Payments	Amount
To balance B/d	3,190	By Rent	1,680
To Entrance Fees	550	By Wages	2,450
To Subscription	18,000	By Lighting Charges	720
To Donations	1,650	By Books Purchased	2,480
To Life Membership Fees	2,500	By Office Expenses	4,500
To Interest on Deposits	480	By 8% Fixed Deposit (on 1.7.2021)	12,000
To Proceeds of Tournament	2,320	By Tournament Expenses	2,020
		By Cash in Hand c/d.	2,840
	28,690		28,690

Other information :
On 31 December, 2020, the club possessed book worth Rs. 20,000 and Furniture worth Rs. 8,500. Provide depreciation on these assets @ 10% including those purchased during the year.
Subscription in arrears in the beginning of the year amounted to Rs. 350 and at the end of the year Rs. 550 were outstanding.
The club paid Rs. 420 rent in advance both in the beginning and at the end of the year.

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

Income and Expenditure Account For the year ended on Dec. 31, 2012

Particulars		Amount	Particulars		Amount
To office expenses		4500	By entrance fees		550
To Rent	1680		By subscription	18,000
Add : Prepaid at beginning	420		Add : outstanding at end	550
Less : Prepaid at end	4 20	1680	Less : outstanding at beginning	350	18,200
To wages		2450	By donations		1,650
To lighting charges		720	By interest on deposits		480
To tournament expenses		2020	By proceeds of tournament		2320
To depreciation on furniture (10% on 22480)		2248
To depreciation on books (10% on 8500)		850
To Surplus		8732
		23,200			23,200

Balance Sheet As on 31.12.2012

Liabilities	Amount	Assets	Amount
Opening Capital Fund	32,460	Cash	3,190
Accrued subscription	350	Books	20,000
Furniture	8850	Prepaid Rent	420
	32,460		32,460

Balance Sheet As on 31.12.2012

Liabilities		Amount	Assets		Amount
Capital Fund	32,460		Accrued subscription		550
Add : Life membership fees			Books	20,000
Add : Surplus	8,732	43,692	Add : Books purchased	2,480
				22,480
			Less : Depreciation	2,248	20,232
			Furniture	8,500
			Less : Depreciation	850	7,650
			Fixed Deposit		12,000
			Cash		2,840
			Prepaid Rent		420
		43,692			43,692

https://tutorstips.com/not-for-profit-organisations/

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

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

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

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

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

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication