Question 31 Chapter 1 – Unimax Class 12 Part 1
31. The following is the Receipts and Payments Account of the City Club for the year ended 31st Dec 2021
| Receipts | Amount | Payments | Amount | |
| To Sports Fund Investment A/c (Jan.1) | 30,000 | By Affiliation fee to the Pradesh Club | 1,000 | |
| To Balance (Jan.1) b/d | 5,000 | By Furniture (July 1) | 3,000 | |
| To Subscription | By Sports Expenses | 2,500 | ||
| 2020 | 500 | By Sundry Expenses | 15,200 | |
| 2021 | 15,000 | 16,500 | By Balance (Dec. 31) c/d | 14,500 |
| 2022 | 1,000 | 12,000 | By Sports Fund Investment A/c (Dec. 31) | 29,500 |
| To Life Membership Fee | ||||
| To Sale of Scrap | ||||
| To Interest on Sports Fund Investment | 2,000 | |||
| 65,700 | 65,700 |
The Club has 1,600 members each paying an annual subscription of Rs. 10. Subscription of Rs. 450 are still in arrears for 2020. Life membership fees are to be transferred to Capital Fund.
Sports Expenses are to be met out of the Sports Fund and interest on sports fund investment is also to be added to the sports fund.
On January 1, 2021, the Club’s assets and liabilities included Furniture Rs. 2,000, Sports Fund and Sports Fund Investment of Rs. 30,000 each.
Provide depreciation on Furniture at 20% p.a. and prepare Income and Expenditure Account for the year ended December 31, 2021, and Balance Sheet of the Club as on that date.
The solution of Question 31 Chapter 1 – Unimax Class 12 Part 1:
Working Notes :
| (1) Calculation of income from the subscription for the year 2012 : | |
| No. of members x Annual Subscription per member = Rs. 1600 x Rs. 10 = Rs. 16000 | 16,000 |
| (2) Calculation of outstanding subscription as on 31-12-12. | 15,000 |
| Subscription income for the year 2012 | 1000 |
| Less Received during 2012 for the same year | |
| Outstanding as on 31/12/12 | |
| (3) Calculation of written down value of Furniture as on 31-12-2012 and depreciation charged for the year 2012 : | |
| Book value of furniture as on 1-1-2012 | 2000 |
| Add Furniture Purchased during 2012 | 3000 |
| 5000 | |
| Less Depreciation for the year 2012 (400+300) (2000 x 20/100) + (3000 x 20/100 x 1/0) | 700 |
| Written down value of furniture on 31-12-2012 | 4300 |
| (4) Subscription outstanding as on 1-1-2012 | |
| Subscriptions received during the year 2012 for 2011 | 500 |
| Add Amount still outstanding | 450 |
| 950 | |
| (5) Calculation of Balance of Sports Fund As on 31st Dec. 2012. | |
| Sports Fund As on 1-1-2012 | 30000 |
| Add Amount received during 2012 | 2000 |
| 32000 | |
| Less Expenditure incurred on Sports during 2012 | 2500 |
| Sports Fund As on 31-12-2012 | 29,500 |
Balance Sheet of M/s City Club As on 31/12/12
| Liabilities | Amount | Assets | Amount |
| Sports Fund | 30000 | Cash at Bank | 5000 |
| Capital fund (B/F) | 7950 | Outstanding Subscription | 950 |
| Sports fund investment | 30000 | ||
| Furniture | 2000 | ||
| 37950 | 37950 |
In the Books of City Club. Income and Expenditure Account of City Club
For the year ended on 31st Dec., 2012
| Expenditure | Amount | Income | Amount |
| To Affiliation fee to the Pradesh club | 1000 | By subscription | 16000 |
| To Sundry Expenses | 15200 | By sale of scrap | 200 |
| To Depreciation on Furniture | 700 | By deficiency | 700 |
| 16900 | 16900 |
Balance Sheet of M/s City Club As on 31st Dec., 2012
| Liabilities | Amount | Assets | Amount | ||
| Pre received Subscription | 1000 | Cash | 14500 | ||
| Outstanding subscription | |||||
| Sports Fund | 2011 | 450 | |||
| Capital Fund | 7950 | 2012 | 1000 | 1450 | |
| Add Life Membership Fee | 12000 | Furniture | 4300 | ||
| Less Deficiency | 700 | 19950 | Sports Fund investment | 29500 | |
| 49,750 | 49,750 |
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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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