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

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

Question 32 Chapter 1 – Unimax Class 12 Part 1

32. On 1st January, 2021, 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
Prereceived 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 2012.  
Rent paid during the year 240
Add outstanding as on 31-12-2012 20
Less outstanding as on 1-1-2012 20
  240
(3) Consumption of literature during 2012.  
Stock of literature on 1-1-2012 47
Add payment made during 2012 for literature 418
  465
Less Stock of literature on 31-12-2012 56
  409
(4) Calculation of subscription income for 2012.  
Subscription & Donations received during 2012 741
Add pre received as on 31-12-12 42
  783
(5) Calculation of loss on sale of 4%, Rs. 200 (F.v.) debentures and Book value of remaining debentures as on 31-12-2012 :-  
  Face value Book value
4% debenture on 1-1-2012 600 636
Less sold during 2012 200 212
 [   636 X 200 ]
600
Remaining 4% debenture on 31-12-12

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., 2012

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 debenture 7    
To Depreciation on Furniture 25    
To Excess of Income over expenditure (Surplus) 91    
  1631   1631

Balance Sheet of M/s Literary Society
As on 31st Dec., 2012

Liabilities Amount Assets   Amount
Outstanding Rent 20 Cash   222
    4% Rs. 400 (f.v.) of debentures    
    Stock of literature    
    Office Furniture 350  
    Add Purchased during the year 40  
    Less Depreciation
3% Rs. 300, Govt. Papers
       25 365
        255
  1322     1322

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