Question 36 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 36 Chapter 1 – Unimax Class 12 Part 1

Table of Contents

The solution of Question 36 Chapter 1 – Unimax Class 12 Part 1:

Working Notes : (1) Calculation of expenditure on Salaries for the year 2012.

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

36. Following is the Receipt and Payment Account of a Drama Club for the year ended 31.12.2021 :

Receipts	Amount	Payments	Amount
To Balance(1.1.2021)	1110	By Salaries	680
To Subscription :		By General Expenses	95
2020	40	By Drama Expenses	580
2021	2050	By Newspaper etc.	145
2022	60	By Municipal tax	40
To Donations	655	By Charity	250
To Ticket of Drama	900	By Investments	2000
To Sale proceed of waste paper	35	By Electricity	135
		By Balance c/d (31.12.2021)	925
	4,850		4,850

Prepare Income and Expenditure account for the year ended 31.12.2021 and a Balance Sheet on that date keeping in view the following information :
(i) There are 500 members, who pay Rs. 5 pa. Rs. 50 is still in arrears for 2020.
(ii) Municipal tax amounting to Rs. 40 was paid for 1 year upto 31.3.2022, salaries outstanding were Rs. 50.
(iii) A donation of Rs. 50 was promised, but not received during the year.
(iv) 5% depreciation is to be provided on building valued at Rs. 5000.
(v) Interest on investments is due for 3 months, @ 3% p.a.

The solution of Question 36 Chapter 1 – Unimax Class 12 Part 1:

Working Notes : (1) Calculation of expenditure on Salaries for the year 2012.

Payment made during the year 2012	680
Add : Outstanding as on 31-12-12	50
	730

(2) Calculation of Expenditure on Municipal taxes for the year 2012.

Payment made during the year 2012	40
Less prepaid as on 31/12/12	10
	30

(3) Calculation of income from subscription for the year 2012 :

Subscription received during 2012	2050
	450
(2500-2050)	2500

(4) Calculation of income from donation for the year 2012 :

Donations received during the year 2012	655
Add Outstanding as on 31/12/12	50
	705

(5) Calculation of Capital fund as on 1-1-2012.

Balance Sheet of M/s Drama Club As on 1-1-12.

Liabilities	Amount	Assets	Amount
Capital (B/f)	6200	Cash	1110
		Building	5000
		Accrued Subscription (50+40)	90
	6200		6200

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

Expenditure	Amount	Income	Amount
To salaries	730	By subscription	2500
To general expenses	95	By donations	705
To drama expenses	580	By Drama tickets	900
To Newspaper	145	By Sale of old newspaper	35
To Municipal taxes	30	By interest on investment Accrued	15
To Charity	250
To Electricity	135
To depreciation Building	250
To Excess of Income over Expenditure (Surplus)	1940
	4155		4155

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

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Liabilities		Amount	Assets		Amount
Capital Fund	6200		Cash		925
Add Surplus	1940	8140	Subscription Accrued (450+50)		500
Subscription prereceived		60	Investment		2000
Outstanding Salary		50	Accrued Interest		15
			Prepaid Municipal Tax		10
			Building
			Less depreciation @ 5%	5000	4750
			Outstanding donation	250	4750

		8250			8250