Question

From the following information, calculate amount of subscriptions to be credited to the income and expenditure account for the year 31st march 2019. Prepare a subscription account [1st april 2018: subscriptions in arrears- ₹50,000. Subscriptions received in advance- ₹30,000]. [31st march 2019-subscriptions in arrears- ₹25,000. Subscriptions received in advance- ₹70,000]. Subscriptions received during the year ended 31st march 2019- ₹3,00,000. Subscriptions still in arrears for the year 2017-18- ₹10,000. Make an subscription account

Answer 1

Answer:

subscription received (total) 3,00,000

Add :- advance of previous year 30,000

Less :- advance of current year (70,000)

2,60,000

Add :- outstanding of current year 15,000

less :- amount received of previous year (40,000)

subscription to be shown in income side 2,35,000

working notes :-

amount received of previous year = total outstanding of previous year - still outstanding

= 50,000 - 10,000 = 40,000

subscription outstanding of current year = outstanding of current year - outstanding (still in arrears) of previous year = 25,000 - 10,000 = 15,000