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
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 |
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 |
This is all about the Question 32 Chapter 1 – Unimax. You can check out the following article to better understand:
Not-for-Profit Organisations – Meaning and Overview
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Accountancy – Unimax Class 12 Part 1 – 2021 – Solution.
Chapter No. 1 – Accounts of Non-Profit Organisations
Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
Chapter No. 3 – Partnership Accounts – II (Goodwill)
Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
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Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Chapter No. 1 – Accounting Not for Profit Organisations
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
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Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Chapter No. 8 – Company Accounts (Share Capital)
Chapter No. 9 – Company Accounts (Issue of Debentures)
Chapter No. 10 – Company Accounts (Redemption of Debentures)
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