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

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, 2012 :  
Payment made for stationery during the year 2011-12 4000
Add : Stock of stationery as on 1-4-11 500
Less: Stock of stationery as on 31-3-2012 900
Expenditure on stationery 3600
(2) Calculation of expenditure on rates for year 2011-12  
Payment made for rates during the year (2011-12) 6000
Less Prepaid as on 31 March, 2011-12 1500
Paid for the year ended 31 March, 2012 4500
Add Prepaid rates as on 1-4-2012 1500
Expenditure for the year 6000
(3) Calculation of expenditure on telephone bill for the year ended 31 March, 2012  
Payment made for rates during the year (2011-12) 1000
Add Outstanding as on 31 March, 2012 350
Expenditure for the year (2011-12) 1350
(4) Calculation of expenditure on sundry expenses for the year ended 31 March, 2012  
Payment made during the year (2011-12) 9250
Less Outstanding as on 1st April, 2011 700
Expenditure for the year (2011-12) 8550
(5) Calculation of Income from subscription during the year ended 31st March, 2012  
Amount received during the year (2011-12) 21100
Add Outstanding as on 31st March, 2012 1400
Income for the year from subscription 22500
(6) Calculation of Income from Investment during the year (2011-12)  
Amount received during the year (2011-12) 10000
Add Outstanding as on 31st March, 2012 375
Income from investment for the year (2011-12) 10375

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

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