Question

calculate the income from subscription for the year 2020-21 to be credited to income and expenditure account from the following information relating to a club

subscription received during the year (including rupees 50000 for2019-20,75000 for 2021-22 and 25000 for 2022-23):1950000
subscription received in advance as on 1st April,2020(including 37500 for 2021-22):87500
subscription outstanding as on 1st April,2020:100000
subscription outstanding as on 31st march,2021:125000
out of subscription outstanding as on 1st April,2020,37500 are no larger receivable.​

Answer 1

Explanation:

in arrears amount we take the large amount on the basis of accrual concept

Answer 2

Subscription for the year 2020-21

Given

Subscription received during the year

Subscription received in advance

Subscription outstanding

To Find

Subscription for the year 2020-21

Solution

Particular                                                                                             Rs.                                                                                         Subscription received during the year                                         19,50,000

(Outstanding of previous year 1,00,000-37,500)                           ( 62,500)

(Advance for next year )                                                                    (75,000)

(Advance for next to next year)                                                        (25,000)

Outstanding for the current year                                                    1,25,000

Advanced received in previous year 87,500-37,500                     50,000

Subscription of the year 2020-21                                                19,62,500

Note:

1. The particular written in brackets are to be substracted from the amounts.
2. Rest all are to be added