Question

(Presentation of Subscription only)

Balance Sheet as on 01.04.2018
Liabilities	Amt. ₹	Amt. ₹	Assets	Amt.  ₹	Amt .₹
Subscription received in Advance for 2018 - 19		20,000	Outstanding Subscription
			2016 - 17	26,000	61,000
			2017 - 18	35,000

 

Dr	Receipts and Payments Account for the year ending 31.03.2019.						Cr
Receipts		Amt. ₹	Amt. ₹	Payments	Amt.₹	Amt. ₹
To Subscriptions
2016 - 17		23,000	4,84,000
2017 - 18		30,000
2018 - 19		4,10,000
2019 - 20		21,000

Adjustments :

Outstanding Subscription for 2018 - 19 is ₹ 32,000

With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on the date.

Answer 1

Dr	In the books of ________________ Income and Expenditure Account for the year ended 31st March 2019						Cr
Expenditure		Amount (₹)	Amount (₹)	Income	Amount (₹)	Amount (₹)
				By Subscription	4,10,000
				Add: Outstanding Subscription for Current Year 2018–19	32,000
					4,42,000
				Add: Subscription of Current Year received in Advance in the Previous Year 2017–18	20,000	4,62,000

 

Balance Sheet as on 31st March 2019
Liabilities	Amt (₹)	Amt (₹)	Assets	Amt (₹)	Amt (₹)
Subscription received in Advance for the Year 2019 - 20		21,000	Outstanding Subscription for
			Add: Year 2018 - 19 (Current year)	32,000	40,000
			Add : Year 2016 -17 (26,000 - 23,000)	3,000
			Add : Year 2017 - 18 (35,000 - 30,000)	5,000

Working Note :

Outstanding subs. given in the balance sheet as on 01 – 04 – 2018 are ₹ 26,000 (for 2016–17) and ₹ 35,000 (for 2017 – 18). Against that as shown in receipt – Payment A/c ₹ 23,000 and ₹ 30,000 are received respectively. Means ₹ 3,000 and ₹ 5,000 are still outstanding which are known in the current year balance sheet.