Question 34 Chapter 1 – Unimax Class 12 Part 1 – 2021

Question 34 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 34 Chapter 1 – Unimax Class 12 Part 1

34. The following is the Receipts and Payments Account of a Club for the year ended 31.12.2021

Receipts Amount Payments Amount
To Cash in hand 1000 By Bank overdraft 5,000
To Subscription 40500 By Medicines 23000
To Donation 7000 By Diet expenses 2000
To Grant from local Authority 3,000 By Doctor’s honorarium 6000
To Proceeds of charity show 8,000 By Electricity & power 2,500
To Interest on investment @ 10% for full year 4,000 By Insurance 9200
To Sundries 400 By petty expenses 300
    By Equipment 200
    By Stationery 9000
    By Expenses on charity show 500
    By Balance c/d : Cash 800
    Bank 4700
  63,900   63,900

Additional Information :

Particulars 1.1.21 31.12.21
Outstanding salaries 500 900
Insurance prepaid 90 30
Subscription due 300 400
Subscription received in advance 100 700
Stock of medicines 5000 4000
Equipments 15000 22000
Building (less depreciation) 50000 45000

Prepare Income and Expenditure Account and a Balance Sheet as on 31.12.21.

The solution of Question 34 Chapter 1 – Unimax Class 12 Part 1: 

Working Notes :
(1) Calculation of consumption of medicine during the year :-

Payment made during the year 23000
Add : Stock of Medicine as on 1-1-12 5000
Less: Stock of Medicine as on 31-12-2012 4000
Expenditure on stationery 24000

 (2) Calculation of expenditure on salaries for year 2012

Payment made during the year 2012 9200
Add Outstanding as on 31-12-2012 900
  10100
Less Outstanding as on 1-1-2012 500
  9600

(3) Calculation of expenditure on Insurance for the year 2012

Payment made during the year 2012 300
Add Prepaid as on 1-1-2012 90
Less Prepaid as on 31/12/12 30
  360

(4) Calculation of Income from subscription during 2012.

Subscription Received during the year 2012 40500
Add Outstanding as on 31 Dec., 2012 400
Add pre received as on 1 Jan., 2012 100
  41000
Less Outstanding as on 1 Jan. 2012 300
Less Prereceived as on Dec. 31, 2012 700
  40000

(5) Calculation of capital fund as on 1st April, 2011

Balance Sheet of Club As on 1-1-12.

Liabilities Amount Assets Amount
Outstanding salaries 500 Cash 1000
Prereceived Subscription 100 Investment 40000
Bank Overdraft 5000 Stock of medicine 5000
Capital (B/f) 105790 Building 50000
    Equipments 15000
    Outstanding Subscription 300
    Prepaid Expenses 90
  111390   111390

Income and Expenditure account of Club
For the year ended on 31st Dec, 2012

Expenditure Amount Income Amount
To medicine consumed. 24000 By subscription 40000
To diet expenses 2000 By donation 7000
To doctor’s Honorium 6000 By grant from local Authority 3000
To Electricity & Power 2500 By proceeds of charity show 8000
To salaries 9600 By interest on investment 4000
To Insurance 360 By sundries 400
To Petty expenses 200    
To Stationery 500    
To expenses on charity show 700    
To depreciation on equipment 2000    
To depreciation on Building 5000    
To Excess of Income over expenditure 9540    
  62400   62400

Balance Sheet of Club  As on 31st Dec, 2012

Liabilities   Amount Assets Amount
Outstanding salaries   900 Cash 800
Pre received Subscription   700 Bank 4700
Capital Fund 105790   Investment 40000
Add Surplus 9540 115330 Prepaid Insurance 30
      Stock of medicine 4000
      Equipment 22000
      Building 45000
      Outstanding Subscription 400
    116930   116930

https://tutorstips.com/not-for-profit-organisations/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

Leave a Reply

Your email address will not be published. Required fields are marked *