Question

Q. No. 15. (Subscriptions)
Prepare a statement showing all relevant items of subscriptions viz., income, advance, outstanding, etc. from the
following information and abstract of Receipts and Payments Alc.
An Extract of Receipts and Payments Account
Dr.
for the year ending on 31st Dec., 2015
Cr. .
Receipts
? | Payments
To Subscription
2014
500
2015
2,000
2016
400 2,900
Information: The club has 50 members, each paying annual subscription of 250. Subscriptions outstanding on
December 31, 2015 were 3600
(Ans, Income from Subscriptions 2,500)​

Answer 1

Answer:

The last adjustment of this sum is wrong according to answer. correct adjustment : subscription outstanding on december 31, 2014 were 3600. Treatment of this sum. By subscription= 2000 (record in inner column) Add. 500 (50 of 50 =2500) of income& expenditure. Total subscription =2500 (record in outer column) okkay...