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

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

Question 36 Chapter 1 – Unimax Class 12 Part 1

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

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

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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