Question

From the following particulars, calculate amount of subscription to be credited to the income and expenditure account for the year ended 31st march, 2014. 1) subscription in arrears on 31st march, 2013 Rs. 5,000 2) subscrition received in advance on 31st march, 2013 for the year ended on 31st march, 2014. Rs.11,000 3) Total subscriptions received during 2013-2014. Rs. 3,54,000 (including rs. 4,000 for 2012-13,rs. 1,200 for 2014-15 and rs. 3,000 for 2015-16) 4) subscription outstanding for 2013-14 rs. 4,000​

Answer 1

Answer:

Explanation:

make a table for better understanding

for i/e ac we only  use amount for current year cy-2013-14

and not previous year py 2012-13 or next years ny-2014-15 or 2015 -16

(start from easy part)

so,amt received=3,54,000

 - ny(1200+3000)=-4200

                         =349800

now - py o/s =      -4000

                          =345800

the advance of py is income of cy

so                        = +11000

                           =356800

also   add cy o/s still to be received but 2013-14 income only

                          =+4000

                         =360800 ans in inc and exp ac

see that subscription in arrear(outstanding) 2013-13=5000 and we received 4000.so in  balance sheet -1000 o/s is of py and 4000 of cy,total 5000

outstanding and advance word can be used for income and expense too

and 'for' means of that particular year(shown in inc&exp ac) and 'on' means total amount in balance sheet