Question

How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March, 2017 and 2018 ?
Subscriptions received during the year ended 31st March, 2018 – ₹ 3,58,500
Subscriptions outstanding on 31st March, 2017 – ₹ 30,000
Subscriptions received in Advance on 31st March, 2017 – ₹ 22,500
Subscriptions received in Advance on 31st March, 2018 – ₹ 13,500
Subscriptions outstanding on 31st March, 2018 – ₹ 37,500
(including ₹ 12,500 for the year ended 31st March, 2017)

Answer 1

The Income and Expenditure Account and the Balance Sheets are prepared and calculated below:

Explanation:

Income and Expenditure Account (Extract)

Income and Expenditure Account (Extract)  for the year ended March 31,2018

By Subscriptions - Rs. 3,58,500

Add: Outstanding at the end - Rs. 37,500

Add: Advance in the beginning - Rs. 22,500

Less: Outstanding in the beginning - Rs. 30000

Less: Advance at the end - Rs. 13,500

Adding all, we get,

= Rs. 3,58,500 + Rs. 37,500 + Rs. 22,500 + Rs. 30000 + Rs. 13,500

= Rs. 3,75,000

Balance Sheet (Extract)  

Balance Sheet (Extract)  as on March 31, 2017

Subscriptions received in Advance - Rs. 22,500

Subscriptions Outstanding - Rs. 30,000

Balance Sheet (Extract)  

Balance Sheet (Extract)  as on March 31, 2018

Subscriptions received in Advance - Rs. 13,500

Subscriptions Outstanding - Rs. 37,500