Question

J.)
репилие Aссоunt - 4,
20. From the following information, calculate amount of subscriptions to be credited to the Income and
Expenditure Account for the year ended 31st March, 2021:
₹
1st April, 2020 Subscriptions in Arrears
50,000
Subscriptions Received in Advance
30,000
31st March, 2021 Subscriptions in Arrears
25,000
Subscriptions Received in Advance
70,000
Subscriptions received during the year ended 31st March, 2021-3,00,000.
Subscription still in arrears for the year 2019-20—10,000.​

Answer 1

Answer:

Amount of subscriptions: Rs. 2,35,000

Explanation:

Subscription received during the year 2020-21 3,00,000

Less: Subscriptions in arrears for 2019-20 50,000

Add: Subscription in arrears for 2020-21 25,000

Add: Subscription in advance for 2020-21 30,000

Less: Subscription in advance for 2021-22 70,000

∴ Subscriptions to be credited to Income and Expenditure Account: 2,35,000

Subscription is a revenue income of 'Not for profit' concern. All its members have to pay subscriptions regularly. It may be given periodically. It is credited to Income and Expenditure account.