Question

Following information was obtained from the Secretary of the sports club :
Rs.
89,000
(a) Subscription received in 2017-18 as per Receipts and Payments A/c
5,000
(b) Advance Subscription received in 2016-17
12,500
(C) Subscription outstanding at the end of 2017-18 (including 1,500 for 2016-17)
3,000
(d) Advance subscription received for 2018-19
600
(e) Subscription Written off during 2017-18
(f) Subscription receivable on 1st April, 2017
8,400
Required:
(1) Calculate subscription income to be credited to Income and Expenditure Account for the year ended
31st March, 2018.
(II) Show how the relevant items will be shown in the Income and Expenditure Account for the year and in
the Balance Sheet as at the end of the year.

Answer 1

Answer:

(including 1,500 for 2016-17)

3,000

(d) Advance subscription received for 2018-19

600

(e) Subscription Written off during 2017-18

(f

Answer 2

Answer: (d) (including 1,500 for 2016-17) 3,000

              (e)  Advance subscription received for 2018-19 600

                (f) Subscription written off during 2017-18

Explanation: Subscription amount to be shown in income & expenditure account can be calculated using the formula given below:

Subscription amount = Subscription for current year

Add: Outstanding subscription for current year

Advance subscription for previous year

Less: Outstanding subscription for previous year

Advance subscription for current year

Substitute values in the above equation

Subscription amount=Rs89,000

Add:Rs5,000

Rs 12,500

Less:Rs3,000

Rs6,00=Rs97,500

Learn more about Outstanding from here;

https://brainly.in/question/5522335

https://brainly.in/question/479820

#SPJ3