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Question
From the following particulars, show how the item ‘subscription’ will appear in the Income and Expenditure Account for the year ended 31-12-2018?
Subscription received in 2018 is ₹ 50,000 which includes ₹ 5,000 for 2017 and ₹ 7,000 for 2019. Subscription outstanding for the year 2018 is ₹ 6,000. Subscription of ₹ 4,000 was received in advance for 2018 in the year 2017.
Ledger
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Solution
| Dr. | Income and Expenditure Account for the year ended 31.12.2018 | Cr. | ||
| Expenses | ₹ | Income | ₹ | ₹ |
| By Subscription | 50,000 | |||
| (−) Subscription 2017 | 5,000 | |||
| 45,000 | ||||
| (−) Subscription recd in Adv. | 7,000 | |||
| 38,000 | ||||
| (+) Subscription O/s | 6,000 | |||
| 44,000 | ||||
| (+) Sub. recd. in Advance 2017 | 4,000 | 48,000 | ||
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