Question 32 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 32 Chapter 1 – Unimax Class 12 Part 1

32. On 1st January 2021, the assets and liabilities of a Literary Society are as follows :
Cash Rs. 212 ; Office Furniture Rs. 350 ; 4% Rs. 600 Municipal Debentures at cost Rs. 636; Stock of Literature Rs. 47: Subscriptions for 2021 received in advance Rs. 42; Rent outstanding Rs. 20. The following is a summary of the cash transactions for the year 2012 :

Receipts	Amount	Payments	Amount
To Balance b/d	212	By Rent	240
To Subscription and Donations	741	By Salaries	650
To Subscription for 2022 received in Advance	28	By Office Expenses	73
To Interest	24	By Cost of 3%, Rs. 300 Govt. Paper	255
To Literature Sales	715	By Lecturer’s Fees	136
To Municipal Debentures (Face Value Rs. 200)	205	By Office Furniture	40
To Receipts from lecture Tickets	109	By Literature Purchases	418
		By Balance c/d	222
	2,034		2,034

On 31st December 2021, Rs. 20 were outstanding for rent and the stock of literature in hand was valued at Rs. 56. Rs. 25 is to be written off from furniture as depreciation.
Prepare the final accounts of the society.

The solution of Question 32 Chapter 1 – Unimax Class 12 Part 1:

Working Notes :
(1) Calculation of capital fund as on 1-1-12.

Balance Sheet of M/s Literary Society As on 31/12/11

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Liabilities	Amount	Assets	Amount
Pre received Subscription	42	Cash	212
Outstanding Rent	20	4% Rs. 600 Debentures	636
Capital fund (B/f)	1183	Stock of literature	47
		Office Furniture	350
	1245		1245

(2) Calculation of Expenditure on Rent for the year 2021.
Rent paid during the year	240
Add outstanding as on 31-12-2021	20
Less outstanding as on 1-1-2021	20
	240
(3) Consumption of literature during 2021.
The stock of literature on 1-1-2021	47
Add payment made during 2021for literature	418
	465
Less Stock of literature on 31-12-2021	56
	409
(4) Calculation of subscription income for 2021.
Subscription & Donations received during 2021	741
Add pre received as on 31-12-2021	42
	783
(5) Calculation of loss on sale of 4%, Rs. 200 (F.v.) debentures and Book value of remaining debentures as on 31-12-2021:-

	Face value	Book value
4% debenture on 1-1-2021	600	636
Less sold during 2021	200	212

[		636	X	200	]
		600

Remaining 4% debenture on 31-12-2021	400	424
	Rs.
Book Value of debenture sold	212
Less: Sale proceeds	205
Loss on sale of debentures	7

Income and Expenditure account of M/s Literary Society
For the year ended on 31st Dec. 2021

Expenditure	Amount	Income	Amount
To Rent	240	By subscription & Donation	783
To Salary	650	By Interest	24
To Office expenses	73	By literature Sales	715
To lecturers’ Fee	136	By Receipts from lecture tickets	109
To literature consumed	409
To loss on sale of a debenture	7
To Depreciation on Furniture	25
To Excess of Income over expenditure (Surplus)	91
	1,631		1,631

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Balance Sheet of M/s Literary Society
As on 31st Dec. 2021

Liabilities	Amount	Assets		Amount
Outstanding Rent	20	Cash		222
Pre received Subscription	28	4% Rs. 400 (f.v.) of debentures		424
Capital Fund	1,183	Stock of literature		56
Surplus	91	Office Furniture	350
		Add Purchased during the year	40
		Less Depreciation	25	365
		3% Rs. 300, Govt. Papers		255
	1,322			1,322