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

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

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

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

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