Question 28 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 28 Chapter 1 – Unimax Class 12 Part 1

28. The following is the Receipts and Payments Account of the Social Club in respect of the year ended 31.3.2021

Receipts		Amount	Payments	Amount
To balance of cash on 1.4.20		10,250	By Salaries	1,680
To Subscription			By Stationery	2,450
2019-20	450		By Rates	720
2020-21	21,100		By Telephone	2,480
2021-22	750	22,300	By Investment	4,500
To Profit on Sports Meet		15,500	By 8% Fixed Deposit (on 1.7.2021)	12,000
To Income from Investment		10,000	By Tournament Expenses	2,020
			By Cash in Hand c/d.	2,840
		58,050		58,050

The following additional information is also provided :
1. There are 450 members each paying an annual subscription of Rs. 50; Rs. 500 were in arrears for 2019-20 as on 1.4.2020
2. On 31.3.21, the rates were prepaid upto 30th June 2021, the rates paid every year on 1st July being Rs. 6,000.
3. There is an outstanding telephone bill for Rs. 350 on 31.3.21.
4. Outstanding sundry expenses as on 31.3.2020 totaled Rs. 700.
5. Stock of stationery on 31.3.2020 was Rs. 500, on 31.3.21 was Rs. 900.
6. On 31.3.2020 building stood in the books at Rs. 1,00,000 and it was subject to depreciation at 5% p.a.
7. Investment on 31st March, 2020 stood at Rs. 2,00,0000.
8. On 31.3.21 income accrued on investments purchased during the year amounted to Rs. 375. Prepare an Income and Expenditure Account for the year 2020-21 and Balance Sheet as on 31.03.21.

The solution of Question 28 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :

(1) Calculation of expenditure on stationery for the year ended 31 March, 2021:
Payment made for stationery during the year 2020-2021	4000
Add : Stock of stationery as on 1-4-20	500
Less: Stock of stationery as on 31-3-2021	900
Expenditure on stationery	3600
(2) Calculation of expenditure on rates for year 2020-21
Payment made for rates during the year (2020-21)	6000
Less Prepaid as on 31 March, 2020-21	1500
Paid for the year ended 31 March, 2021	4500
Add Prepaid rates as on 1-4-2021	1500
Expenditure for the year	6000
(3) Calculation of expenditure on telephone bill for the year ended 31 March, 2021
Payment made for rates during the year (2020-21)	1000
Add Outstanding as on 31 March, 2021	350
Expenditure for the year (2020-21)	1350
(4) Calculation of expenditure on sundry expenses for the year ended 31 March, 2021
Payment made during the year (2020-21)	9250
Less Outstanding as on 1st April, 2021	700
Expenditure for the year (2020-21)	8550
(5) Calculation of Income from subscription during the year ended 31st March, 2021
Amount received during the year (2011-21)	21100
Add Outstanding as on 31st March, 2021	1400
Income for the year from subscription	22500
(6) Calculation of Income from Investment during the year (2020-21)
Amount received during the year (2020-21)	10000
Add Outstanding as on 31st March, 2021	375
Income from investment for the year (2020-21)	10375

Balance Sheet of Social Club As on 31st March, 2021

Liabilities	Amount	Assets	Amount
Outstanding expenses	700	Cash	10,250
Capital fund (B/F)	3,12,050	Building	1,00,000
		Investment	2,00,000
		Prepaid Rates	1,500
		Accrued subscription	500
		Stock of stationary	500
	3,12,750		3,12,750

Income and Expenditure Account of Social Club For the year ended on 31st March, 2021

Expenditure	Amount	Income	Amount
To Sundry Exp.	8550	By subscription	22500
To Salaries	20800	By profit on sports meet	15500
To Stationery	3600	By Income from Investment	10375
To Rates	6000
To Telephone Bill	1350
To depreciation on Building	5000
To excess of income over expenditure	3075
	48375		48375

Balance Sheet of Social Club As on 31st March, 2021

Liabilities		Amount	Assets		Amount
Outstanding Bill		350	Cash		4500
Pre received Subscription		750	Outstanding subscription (1400+50)		1450
Capital Fund	312050		Accrued interest		375
Add: Excess of Income over Expenditure	3075	315125	Stock of stationery		900
			Prepaid Rates		1500
			Building	100000
			Less depreciation @ 5% –	5000	95000
			Investment		200000
			New Investment purchases		12500
		316225			316225