Question

A club has 500 members. Each member has to pay subscription @ 200.
Total subscriptions received during the year ending 2018 was 1,20,000
including 12,000 for the year 2017 and 18,000 for the year 2019. Twenty
members paid for their subscription for 2018 in the year 2017. Subscription
outstanding as on 31.12.2017 was 15.000.
Compute the amount of subscription (by preparing Subscription Account) to
be credited to Income and Expenditure Account and outstanding subscription
to be shown in the Balance Sheet as at 31 December, 2018.​

Answer 1

Amount to be debited to Income and Expenditure Account is 94,000

Explanation:

Number of members = 500

Each paying subscription = Rs.200

Total amount = Rs.1,00,000

Amount received during the year                        = Rs.1,20,000

Less: Outstanding at the beginning                    =        (12000)

Less: Prepaid at the end                                      =        (18000)

Add: Prepaid subscription at the beginning      =          4000  

Amount debited to Income and Expenditure A/c       94,000