From the following information, how subscription will be shown in Income and Expenditure Account for
ending 31st March, 2017 and in Balance Sheet on that date
3
31-02-17
Subscription in arrears Olstanding
Subscription received in advance
Subscription in arrears (including 500 related to 2015-16)
Subscription received in advance
Subscription received during the year 2016-17
1,000
2,000
3.000
500
50,000
Answers
Answer:
Subscription Shown in Income & Expenditure Account As on 31st March 2017 in Income side
Explanation:
Subscription Received during the year 50,000
Add: Subscription in Arrears for 2016-2017 (3,000 - 500) 2,500
Add: Subscription Received in Advance from 01.4.2016 2,000
Less : Subscription Received in Advance at the end for next year 54,500
Less: Subscription in Arrear as on 1 April, 2016 500
Actual Amount of Subscription shown in Income & Expenditure A/c 53,500
Balance Sheet (As on 31.3.2017)
Liabilities Amount Assets Amount
Subscription Received in Advance 500 Outstanding Subscription 3,000
(2,500+500)