Subscription received in cash during the year amounted to Rs 500000: subscription outstanding at the end of previous year was Rs 20000 and outstanding at the end of current year was Rs 25000. Subscription received in advance for next year was Rs 8000 and received in advance during previous year was Rs 7000. The amount credited to Income and Expenditure Account will be:
Answers
Answer:
494000
Explanation:
subscription received in cash during the year 5,00,00
add: outstanding for previous year was 20,000
add: advance received during previous year 7,000
less: outstanding at the end of current year (25000)
less: advance for next year (8000)
500000
+20000
+7000
-25000
-8000
= 494000
AMOUNT TO BE CREDITED IN INCOME AND EXPENDITURE ACCOUNT WILL BE 5,06,000
GIVEN: Subscription received in cash during the year = 5,00,000; Subscription outstanding previous year= 20,000 ; Subscription outstanding for current year= 25,000 ; Subscription received in advance for next year = 8,000 ; Subscription received in advance during previous year= 7,000
TO FIND: Amount credited to income and expenditure account
SOLUTION:
Non-profit organizations are an organization that works for social welfare and not for profit motives.
They prepare the Receipt and Payment Account and Income and Expenditure Account.
As in the Receipt and Payment Account, we write whatever is received during the year but in the Income and Expenditure Account, we write the things which are of the same year.
AMOUNT TO BE CREDITED IN INCOME AND EXPENDITURE ACCOUNT-
Subscription received during the year = 5,00,000
Add Current Year Outstanding = 25,000
Add Subscription received in advance = 8,000
Less Outstanding subscription for previous year = 20,000
Less Subscription received in advance previous year = 7,000
AMOUNT TO BE CREDITED IN INCOME AND EXPENDITURE ACCOUNT WILL BE 5,06,000
AMOUNT TO BE CREDITED IN INCOME AND EXPENDITURE ACCOUNT WILL BE 5,06,000.
PROJECT CODE #SPJ3