Question

ILLUSTRATION 3. Calculate the amount of subscription to be shown in 2017-18 in the
Income & Expenditure Account by preparing Subscription Account.
Subscription received in 2017-18 as : 2016-17 * 10,000 ; 2017-18 90,000 ; 2018-19 3 8,000.
Subscription outstanding in 2016-17 * 15,000 in 2017-18 20,000+
Subscription received in advance in 2016-17 for 2017-18 * 13,000 for 2018-19, 7 4,000
Life membership subscription received in 2017-18 * 2,000​

Answer 1

Explanation:

Subscription Received during the year = Rs. 14,670 

less: Outstanding subscription in the beginning = Rs. 1500

less: Advance subscription in the end = Rs 540

Add: Outstanding subscription in the end = 1200

Add: Advance subscription in the beginning = 900

Amount to be credited to income and expenditure a/c = Rs. 14,730.

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