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

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

Question 35 Chapter 1 – Unimax Class 12 Part 1

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

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

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