Question

Cal calculate the amount of subscription credit to the income and expenditure account
1. amount received during the year 780000
2018 19 20000
2020 21 10000
2021 20 10000
2. Subscription received in advance 35000 as on 1st April 2019 including 15,000 for 2020 21
3. Subscription in errors as on 31st March 2020 50000 out of out of subscription in error on 1st April 2019 are not longer recoverable
4. Subscription in error as on 1st April 2019 40000

Answer 1

On 1.1.20 X Ltd. purchased fixed assets worth 2,50,000 for a consideration of * 2,30,000 payable by the

issue of 20,000 fully paid equity shares of 10 each at a premium of 15%. After 6 months X Ltd. sold the

above fixed assets for * 3,20,000.