Question 33 Chapter 1 – Unimax Class 12 Part 1 – 2021

Question 33 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 33 Chapter 1 – Unimax Class 12 Part 1

33. The following is a summary of the cash transactions of a debating society for the year ended 31st March, 2021 :

Receipts Amount Payments Amount
To Balance from the Last Year 319 By Rent and rates 168
To Subscriptions & Entrance Fees 1855 By Wages of Servants 245
To Donations 85 By Lighting 72
To Life membership Subscriptions 250 By Lecturer’s Fees 835
To Interest on Investments 94 By Purchase of Furniture 40
To Profit form Entertainment 42 By Office Expenses 448
    By Purchase of Rs. 500 Municipal Debentures 473
    By Cash at Bank c/d 342
    By Cash in Hand c/d 22
  2,645   2,645

At the beginning of the year the society owned Rs. 4,000 government securities which had cost Rs. 3,251 and furniture then valued at Rs. 870. There were living at that date thirty-two life members, each of whom had paid a subscription of Rs. 50, but of these two died during the year. Ordinary subscription in Arrear at the beginning of the year amounted to Rs. 35 and at the end of the year to Rs. 45 and six months rent (Rs. 60) was due both at the beginning and end of the year. Prepare the society’s Income and Expenditure Account for the year ended 31st March, 2021 and Balance Sheet as on that date. Rs. 75 is to be written off by way of furniture depreciation. Life membership subscriptions of living life members are held in a Life Membership Fund, But the Life membership subscription of a life member who dies is treated as the income of the year.

The solution of Question 33 Chapter 1 – Unimax Class 12 Part 1: 

Working Notes :

(1) Calculation of capital fund as on 1-4-2012.

Balance Sheet of M/s Debating Society
As on 31Mar., 2012.

Liabilities Amount Assets Amount
Life Membership Fund (50 x 30) 42 Cash 319
Outstanding Rent 20 Govt. securities (Face value Rs. 4000) 3251
Capital fund (B/f) 1183 Furniture 870
    Outstanding Subscription 35
  4475   4475

(2) Calculation of Expenditure on Rent and rates for the year 2012-13.

Rent and Rates paid during the year 168
Add outstanding Rent as on 31-3-2013 60
Less outstanding as on 1-4-2012 60
  168

(3) Calculation of written down value of office Furniture As on 31-3-2013.

Furniture as on 1-4-2012 870
Add Purchase during 2012-13 40
  910
Less Depreciation charged during 2012-13 75
  835

(4) Income from subscription & Entrance fee for the year 2012-13

Subscription & Entrance fee received during 2012-13 1855
Add Outstanding subscription As on 31-3-13 45
Less Outstanding As on 31-3-13 35
 

1865

Income and Expenditure account of M/s Debating Society
For the year ended on 31-3-2013.

Expenditure Amount Income Amount
To Office expenditure 448 By subscriptions  
To Rent & Rates 168 Entrance Fee 1865
To Wages of servant 242 By donation 85
To Lighting 72 By Interest on investment 94
To Lecturer’s fee 835 By profit from Entertainment 42
To Depreciation on Furniture 75 By life membership subscription of 2 members 100
To Excess of Income over expenditure (Surplus) 343    
  2186   2186

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

Liabilities   Amount Assets Amount
Outstanding Rent   60 Cash 22
Life membership subscription (1-4-12) 1600   Cash at Bank 342
Less (Transfer to income Rs. 50 x 2 members)
(Who died during 2012-13)
100   Outstanding Subscription 45
  1500   500, M-Debentures 473
Add Received during 2012-13 250 1750 Government Securities 3251
Capital Fund 2815   Furniture 835
Add Surplus 343 3158    
    4968   4968

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T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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