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

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 Withdrawls 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 2200
Add : Outstanding at the end as on 31-3-2013 800
Expenditure on salary for the year 31-3-2013 3000
(2) Calculation of expenditure on the rent for the year 31-3-2013.  
Payment made during the year 2600
Add : Outstanding at the end as on 31-3-2013 500
Expenditure on the rent for the year 31-3-2013 3100
(3) Calculation of Income from the subscription for the year 31-3-2013.  
Subscription received during the year 8000
Add Outstanding as on 31 March, 2013 1100
Income from subscription 9100
(4) Calculation of amount of donations and grant from government to be posted Income and Expenditure a/c  
(i) Amount of donation received during the year 5000
Less Capitalised Amount 4000
  1000
(ii) Amount of grant received from government 15000
Less Capital Amount 10000
Income for the year from subscription

5000

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 equipments 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   Equipments 3000  
Add Government Grants 10000 20100 Less depreciation @ 20% – 600 2400
      Outstanding subscription   1100
    21400     21400

https://tutorstips.com/not-for-profit-organisations/

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