Question

Bombay Sports Club, disclosed that it received Rs. 1,50,000 by way of subscription during the year ended 31st March, 2020. Additional Information: Subscription outstanding on 31st March, 2019 Rs. 4,000 Subscription outstanding on 31st March, 2020 Rs. 3,800 Subscription received in advance on 31st March, 2019 Rs. 4,500 Subscription received in advance on 31st March, 2020 Rs. 5,100 Calculate amount of subscription that will be shown in Income & Expenditure Account for the year ended 31st March, 2020.​

Answer 1

Answer:

calculation of the amount of subscription:-

1,50,000-4000+3800+4500-5100 = 1,49,200

Answer 2

Answer:

Subscription received during the year                          = ₹  1,50,000

+ Outstanding at the end i.e., on 31st March, 2020      = ₹  3,800

+ Advance at the beginning i.e., on 31st March, 2019   = ₹  4,500

- Outstanding at the beginning i.e., on 31st March, 2019 = ₹ (4,000)

- Advance at the end i.e., on 31st March, 2020                = ₹   (5,100)

Amount credited to Income and Expenditure A/c           =  ₹  1,49,200

Explanation:

Subscription is the amount which is received by Club (Not for profit organisation) as a recurring income. It is an income which is credited to Income and Expenditure Account.

As per Accrual Concept, amount belongs to current year is added to received amount during the year and amount belongs to previous year or next year is deducted from received amount during the year.

To determine the amount of subscription credited to Income and Expenditure account as

Subscription received during the year

Add: Outstanding at the end

Add: Advance at the beginning

Less: Outstanding at the beginning

Less: Advance at the end