Question 29 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 29 Chapter 1 – Unimax Class 12 Part 1

29. The Panjab Club started its activities on 1.4.2020. The following is the Receipts and Payments Accounts of the Club for the year ending 31.3.2021. Prepare an Income & Expenditure Account and Balance Sheet as on that date :

Receipts	Amount	Payments	Amount
To Sale of Grass	8,000	By Library Books	6,000
To Grant from Govt.	15,000	By Equipments	3,000
To Donations from Non-members	5,000	By Salaries	2,200
To Sale of Newspaper	100	By Entertainment expenses	1,000
To Sale of Grass	700	By Rent	2,600
To Withdrawals from Bank	7,000	By Newspapers	400
		By Telephone	1,100
		By Bank Deposits	10,000
		By Balance c/d	9500
	35,800		35,800

Additional Information :
(a) Grants from Govt. Rs. 10,000 and Donations from non-members Rs. 4,000 are to be capitalized.
(b) Depreciate books @ 10% and equipments @ 20%.
(c) Rent Rs. 500 and Salaries Rs. 800 are due.
(d) Subscription due at the end Rs. 1,100.

The solution of Question 29 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :

(1) Calculation of expenditure on salary for the year 31 March 2013 :
Payment made during the year 31-3-2013	2,200
Add: Outstanding at the end as on 31-3-2013	800
Expenditure on salary for the year 31-3-2013	3,000
(2) Calculation of expenditure on the rent for the year 31-3-2013.
Payment made during the year	2,600
Add: Outstanding at the end as on 31-3-2013	500
Expenditure on the rent for the year 31-3-2013	3,100
(3) Calculation of Income from the subscription for the year 31-3-2013.
Subscriptions received during the year	8,000
Add Outstanding as on 31 March 2013	1,100
Income from subscription	9,100
(4) Calculation of the amount of donations and grants from the government to be posted Income and Expenditure a/c
(i) Amount of donations received during the year	5,000
Less Capitalised Amount	4,000
	1,000
(ii) Amount of grant received from government	15,000
Less Capital Amount	10,000
Income for the year from subscription	5,000

Income and Expenditure Account of Punjab Club For the year ended on 31st March 2013

Expenditure	Amount	Income	Amount
To Salaries	3000	By subscription	9100
To Entertainment	1000	By Grant from Government	5000
To Rent	3100	By donations	1000
To Newspaper	400	By Sale of old newspaper	100
To Telephone	1100	By Sale of grass	700
To depreciation on Books	600
To depreciation on equipment	600
To excess of incomes over expenditure	600
	15900		15900

Balance Sheet of Punjab Club As on 31st March 2013

Liabilities		Amount	Assets		Amount
Outstanding salary		800	Cash		9500
Outstanding Rent		500	Bank deposit	10000
Capital Fund	Nil		Less: withdrawals	7000	3000
Add Surplus	6100		Library books	6000
(Excess of Income over Expenditure)			Less depreciation @ 10%	600	5400
Add donations	4000		Equipment	3000
Add Government Grants	10000	20100	Less depreciation @ 20% –	600	2400
			Outstanding subscription		1100
		21400			21400