Question 39 Chapter 1 - Unimax Class 12 Part 1 - 2021

Question 39 Chapter 1 – Unimax Class 12 Part 1

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The solution of Question 39 Chapter 1 – Unimax Class 12 Part 1:

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

39. The following is the receipt and Payment account of the ‘Bhartiya Gymkhana Club’ for the year ending 31st December, 2021 :

Receipts		Amount	Payments	Amount
To opening balance :			By Honorarium to secretary	4800
Cash	170		By Rates & taxes	1260
Bank (as per Pass book)	8210	8380	By Printing and Stationary	470
To Subscriptions		10710	By drama expenses	1530
To receipt from fetes		2400	By Groundmen’s wages	840
To proceeds of Drama tickets		4270	By Expenditure on fetes	2390
To Bank interest		230	By Payment for bar purchases	5770
To bar takings		7450	By Repairs etc.	320
To Cash overspent		20	By new car less sale proceeds of old car Rs. 3,000	12600
			By Bank balance (as per pass book)	3480
		33,460		33,460

You are given the following additional information :

Particulars	31.12.2020	31.12.2021
(1) Subscription due	1200	980
(2) Unpresented Cheques being payment of printing	90	30
(3) Club premises at cost	29000	–
(4) Depreciation on club premises	18800	–
(5) Car at cost	12190	–
(6) Depreciation on car	10290	–
(7) Value of bar stock	710	870
(8) Amount due for bar purchases	590	430

(9) Cash overspent represents amount of honorarium to the secretary not drawn due to shortage of funds. But the total salary payable to him for the year was already included in Rs. 4,800.
(10) Depreciation is to be provided @ 5% p.a. on the written down value of club premises and @ 15% p.a. on car for whole of the year.
You are required to adjust bank balance according to cash book and prepare income and expenditure account of the club and balance sheet as on 31st Dec., 2021.

The solution of Question 39 Chapter 1 – Unimax Class 12 Part 1:

Income and Expenditure account of Bhartiya Gymkhana Club
For the year ending 31st Dec, 2012

Expenditure		Amount	Income	Amount
To Honorarium		4800	By Subscription	10490
To Rates & Taxes		1260	By Receipts from fetes	2400
To Printing & Stationery		410	By proceeds of drama	4270
To Drama Expenses		1530	By Bank interest	230
To Ground man wages		840	By Bar takings	7450
To expenses on fates		2390	By profit on the sale of old car	1100
To Repairs		320
To Bar Expneses (2)		5450
To Depreciation :
On club house	510
On Car	2340	2850
To surplus (excess of income over expenditure)		6090
		25940		25940

Balance Sheet of Bhartiya Gymkhana As on 31st Dec, 2012

Liabilities		Amount	Assets		Amount
Outstanding Honorarium		20	O/s Subscription		980
Outstanding Expenses for Bar purchases		430	Bar Stock		870
Capital Fund	21710		Car		13260
Add Surplus	6090	27800	Club House premises		9690
			Bank	3480
			Less Unpresented cheque for stationery on 31-12-12	30	3450

		28250			28250