Question 35 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 35 Chapter 1 – Unimax Class 12 Part 1

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The solution of Question 35 Chapter 1 – Unimax Class 12 Part 1: Working Notes : (1) Calculation of expenditure on rent and rates for the year 2012.

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

35. The following is a summary of cash transactions of Satluj Club for the year ended 31.12.2021 :

Receipts	Amount	Payments	Amount
To Balance of last year	480	By Rent and Rates	255
To Subscription and entrance fees	2790	By Wages of servants	360
To Donations	180	By Light, repair etc.	129
To Life membership fees	375	By Lecturer’s fees & Expenses	1254
To interest on investments	150	By Purchase of stool	60
To Profit from entertainment	60	By Office Expenses	186
		By Sundry Expenses	450
		By Purchase of NSC	750
		By Cash in Hand (c/d)	591
	4,035		4,035

At the beginning of the year the club had investments worth Rs. 4,875 and musical instruments worth Rs. 1,305. There were 32 life members on that date each of whom had paid a subscription of Rs. 75. There was a separate fund for this purpose. Ordinary subscriptions in arrears at the beginning of the year amounted to Rs. 60 and Rs. 75 at the end of the year. Rent of Rs. 90 was due for both at the beginning and at the end of the year.
Prepare Income and Expenditure Account of the Satluj Club for the year ended 31.12.2021.

The solution of Question 35 Chapter 1 – Unimax Class 12 Part 1: Working Notes : (1) Calculation of expenditure on rent and rates for the year 2012.

Payment made during the year 2012	255
Add : Outstanding as on 31-12-12	90
Less: Outstanding as on 1-1-2012	90
	255

(2) Calculation of Income from subscription & Entrance fee for the year 2012.

Received during the year 2012	2790
Add Outstanding at end on 31-12-2012	75
	2865
Less Subscription outstanding on 1-1-2012	60
	2805

(3) Capital Fund as on 1-1-2012

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

Liabilities	Amount	Assets	Amount
Life membership fund	2400	Cash	480
Outstanding Rent	90	Investment	4875
Capital (B/f)	4230	Musical Instrument	1305
		Outstanding Subscription
	6720		6720

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

Expenditure	Amount	Income	Amount
To Rent and Rates	255	By subscription & Entrance fees	2805
To wages	360	By donation	180
To light and Repair	129	By Interest on Investment	150
To lecturer’s fees	1254	By Profit on Entertainment	60
To office expenses	186
To sundry expenses	450
To Surplus (excess of Income over expenditure)	561
	3195		3195

Balance Sheet of M/s Satluj Club
As on 31st Dec, 2012

Liabilities		Amount	Assets	Amount
Outstanding Rent		90	O/s Subscription	75
Life membership fund		2400	Stool	60
Life membership fee		375	National Saving Certificate	750
Capital Fund	4,230		Cash	591
Add Surplus	561	4791	Investment	4875
			Musical Instruments	1305
		7656		7656