# 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 :

Balance Sheet of Social Club As on 31st March, 2011

 Liabilities Amount Assets Amount Outstanding expenses 700 Cash 10250 Capital fund (B/F) 312050 Building 100000 Investment 200000 Prepaid Rates 1500 Accrued subscription 500 Stock of stationary 500 312750 312750

Income and Expenditure Account of Social Club For the year ended on 31st March, 2012

 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, 2012

 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

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)