Question

14. Calculate the amount of subscription income for the year 2007.
Rs
Subscription received during the year 2007 12,000
Subscription received in advance for 2008 1,400
Subscription outstanding at the beginning of 2007 1,600
Subscription outstanding at the closing of 2007 700
Calculate the amount of subscription at the closing of 2007​

Answer 1

Answer:

Given :

• Subscription received during the year 2007 - 12,000

• Subscription received in advance for 2008 - 1,400

• Subscription outstanding at the beginning of 2007 - 1,600

• Subscription outstanding at the closing of 2007 - 700

To Find :

Amt. of Subscription at closing Date

Solution :

Subs. rcvd. During the year 2007 - 12,000

Add : Subs. Outstanding at the

beginning of 2007 - 1,600

Less : Subs. Rcvd. in adv. for

2008 - 1,400

Less : Subs. outstanding at the

Closing of 2007. - 700

______

11,500

∴ Amt. of Subscription at Closing date = 11,500.

Working Note :

= 12,000 + 1,600 - 1,400 - 700

= 13,600 - 1,400 - 700

= 12,200 - 700

= 11,500

Note :

✪ To Add with Subscription Amount :

• Current Year Outstanding Subscription

• Previous Year income Received in Adv.

✪ To Less with Subscription Amount :

• Previous Year Outstanding Subscription

• Current Year Income rcvd. in advance.