Question 31 Chapter 1 – Unimax Class 12 Part 1 – 2021

Question 31 Chapter 1 - Unimax Class 12 Part 1 - 2021

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 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 in 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 the 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  
Subscription 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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