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Question 38 Chapter 1 – Unimax Class 12 Part 1
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38. The following is the Receipts and Payments Account of Sydney Club for the year ended on 31.3.2021
| Receipts | Amount | Payments | Amount | |
| To Opening Balance Cash | 10,000 | By entrance donation refund | 20,000 | |
| Bank | 3850 | By Salaries | 1,20,000 | |
| To Subscription received | 2,02,750 | By Creditors for supplies | 15,20,000 | |
| To Entrance donation | 1,00,000 | By Printing and Stationery | 70,000 | |
| To Interest received | 58,000 | By Postage | 40,000 | |
| To Sale of assets | 8,000 | By Telephone and telex | 52,000 | |
| To Miscellaneous income | 9,000 | By Repairs and maintenance | 48,000 | |
| To Receipts at : | By Glass and table linen | 12000 | ||
| Coffee room | 10,70,000 | By Crockery and cutlery | 14,000 | |
| Wines and spirits | 5,10,000 | By Garden upkeep | 8000 | |
| Swimming pool | 80,000 | By Membership fees | 4,000 | |
| Tennis court | 1,02,000 | By Insurance | 5,000 | |
| By Electricity | 8000 | |||
| By Closing Balance : Cash | 8,000 | 2,32,600 | ||
| Bank | 2,24,600 | |||
| 21,53,600 | 21,53,600 |
The assets and liabilities as on 31.3.2020 were as follows :
Fixed assets (net) : Rs. 5,00,000, Stock of Supplies Rs. 3,80,000, Investment in government securities Rs. 5,00,000, outstanding subscription Rs. 12,000, prepaid insurance Rs. 1,000, Sundry creditors for supplies Rs. 1,12,000, subscription received in advance Rs. 15,000, entrance donation received pending membership Rs. 1,00,000, Gratuity fund Rs. 1,50,000.
The following adjustments are to be made while drawing up the accounts :
(a) Subscription received in advance as on 31st March, 2021 was Rs. 18,000.
(b) Outstanding Subscription as on 31st March, 2021 was Rs. 7,000.
(c) Outstanding expenses are : salaries Rs. 8,000 and Electricity Rs. 15,000.
(d) 50% of the entrance donation was to be capitalized. There was no pending membership as on 31st March, 2021.
(e) The cost of assets sold net as on 1.4.20 was Rs. 10,000.
(f) Depreciation is to be provided at the rate of 10% on assets.
(g) A sum of Rs. 20,000 received in October 2020 as entrance donation from an applicant was to be refunded as he had not fulfilled the requisite membership qualifications. The refund was made on 31.3.2021.
(h) The value of closing stock of supplies was Rs. 2,10,000.
(i) The club as a matter of policy charges off to income and expenditure account all purchases made on account of crockery, cutlery, glass and linen in the year of purchase.
Prepare an income and expenditure account for the year ended 31st March, 2021 and the balance sheet as on 31st March, 2021 along with necessary workings.
The solution of Question 38 Chapter 1 – Unimax Class 12 Part 1:
Working Notes :
(1) Calculation of Capital Fund on 1st April, 2011.
Balance Sheet of Sydney Club For the year ended 31 March, 2011
| Liabilities | Amount | Assets | Amount |
| Creditors | 112000 | Cash | 10000 |
| Prereceived Subscription | 15000 | Bank | 3850 |
| Entrance donations rect. In adv. | 100000 | Fixed Assets | 500000 |
| Gratunity fund | 150000 | Stock of Supplies | 380000 |
| Capital fund | – | Investments | 500000 |
| (Balancing Figure) | 1029850 | Outstanding Subscription | 12000 |
| Prepaid Insurance | 1000 | ||
| 1406850 | 1406850 |
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(2) Calculation of Income from the Subscription for the year ended 31st March, 2012.
| Subscription received during the year | 202750 | |
| Add Outstanding subscription on 31-3-12 | 7000 | |
| Add Prereceived subscription on 31-3-11 | 15000 | |
| 224750 | ||
| Less: Outstanding subscription on 1-4-11 | 12000 | |
| Less: Prereceived subscription on 31-3-12 | 18000 | 30000 |
| Income for the year from subscription | 194750 |
(3) Calculation of purchases and consumption of supplies for the year ended 31-3-12.
Total Creditors Account
| Particulars | Amount | Particulars | Amount |
| To cash a/c | 1520000 | By Balance b/d | 112000 |
| To Balance c/d | Nil | By Purchases (B/f) | 1408000 |
| 1520000 | 1520000 |
Consumption :
| Opening Stock on 1-4-11 | 380000 |
| Add purchases made during the year | 1408000 |
| 1788000 | |
| Less Stock as on 31-3-12 | 210000 |
| Consumption of supplies | 1578000 |
(4) Calculation of Expenditure on salaries for the year ended 31-3-12
| Payment for salaries made during the year | 120000 |
| Add outstanding as on 31-3-12 | 8000 |
| Expenditure for the year | 128000 |
(5) Calculation of Expenditure on Insurance for the year ended 31-3-12
| Payment made during the year | 5000 |
| Add prepaid as on 1-4-11 | 1000 |
| Expenditure for the year | 6000 |
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(6) Calculation of Expenditure on Electricity charges for the year ended 31-312
| Paid during the year | |
| Add outstanding as on 31-3-12 | 15000 |
| Expenditure for the year | 23000 |
(7) Calculation of loss on the sale of Fixed Asset :
| Book value of Asset sold | 10000 |
| Amount at which asset sold | 8000 |
| Loss on Sale of Asset | 2000 |
(8) Calculation of Entrance Donations to be Capitalised.
| 50% of Entrance Donations (1.4.11) As on 1-4-2011 (Rs. 100,000 x 50/100) | 50000 | |
| Entrance donation received during 2011-12 | 100000 | |
| Less Amount refunded | 20000 | |
| 80000 | ||
| Less Treated As income (80000 x 50/100) | 40000 | 40000 |
| Total Amount of Entrance | 90000 | |
| Donations to be Capitalised |
(9) Calculation of Entrance Donations treated as income for the year 2011-12.
| 50% of Entrance Donations As on 1-4-2011 (Rs. 100,000 x 50/100) | 50000 |
| 50% of Net Entrance Donations received during 2011-12 | 40000 |
| Entrance Donations to be treated as income for the year 2011-12 | 90000 |
In the Books of Sudney Club. Income and Expenditure account
For the year ended 31st March, 2012
| Particulars | Amount | Particulars | Amount |
| To Salaries | 128000 | By subscription | 194750 |
| To consumption of Supplies | 1578000 | By Entrance donation | 90000 |
| To printing & Stationery | 70000 | By Interest received | 58000 |
| To Postage | 40000 | By Miscellaneous income | 9000 |
| To telephone and telex | 52000 | By Receipt at | |
| To Repairs and maintenance | 48000 | Coffee room | 1070000 |
| To glass & table lenin | 12000 | Withs & spoils | 510000 |
| To Crockery & cutlery | 14000 | Swimming pool | 80000 |
| To garden up keep | 8000 | Tennis Court | 102000 |
| To Membership fees | 4000 | ||
| To Insurance | 6000 | ||
| To Electricity | 23000 | ||
| To Depreciation (500000 – 10000 x 10/100) | 49000 | ||
| To Loss on sale of Fixed Asset | 2000 | ||
| To Surplus | 79750 | ||
| 2113750 | 2113750 |
Balance Sheet of M/s Sydney Club As on 31st March, 2012
| Liabilities | Amount | Assets | Amount | ||
| Outstanding Expenses | 23000 | Cash | 8000 | ||
| Salaries | 8000 | Bank | 224600 | ||
| Electricity | 15000 | Outstanding Subscription | 7000 | ||
| Pre received Subscription | 18000 | Stock of supplies | 210000 | ||
| Gratuity fund | 150000 | Investments | 500000 | ||
| Capital fund | 1029850 | Fixed Assets | 490000 | ||
| Add Surplus | 79750 | Less dep. @ 10% | 49000 | 441000 | |
| Add Entrance Donation | 90000 | 1199600 | |||
| 1390600 | 1390600 |
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- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
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