4
Question
Receipts and Payments Account of Friends Club showed that ₹ 6,85,000 were received by way of subscriptions for the year ended on 31st March, 2018.
The additional information was as under :
(a) Subscription outstanding as on 31st March, 2017 were ₹ 65,000 .
(b) Subscription received in advance as on 31st March , 2017 were ₹ 41,000.
(c) Subscription outstanding as on 31st March, 2018 were ₹ 54,000 .
(d) Subscription received in advance as on 31st March , 2018 were ₹ 25,000.
Show how the above information would appear in the final accounts for the year ended on 31st March, 2018 of Friends Club.
The additional information was as under :
(a) Subscription outstanding as on 31st March, 2017 were ₹ 65,000 .
(b) Subscription received in advance as on 31st March , 2017 were ₹ 41,000.
(c) Subscription outstanding as on 31st March, 2018 were ₹ 54,000 .
(d) Subscription received in advance as on 31st March , 2018 were ₹ 25,000.
Show how the above information would appear in the final accounts for the year ended on 31st March, 2018 of Friends Club.
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Solution
Income and Expenditure Account
for the year ending March 31, 2018
Dr.
Cr.
Expenditure
Amount
(₹)
Income
Amount (₹)
Subscriptions
6,90,000
Balance Sheet
as on March 31, 2018
Liabilities
Amount
(₹)
Assets
Amount (₹)
Subscriptions Received in Advance
25,000
Subscriptions Outstanding
54,000
Balance Sheet
as on March 31, 2017
Liabilities
Amount
(₹)
Assets
Amount (₹)
Subscriptions Received in Advance
41,000
Subscriptions Outstanding
65,000
Working Notes:
WN1: Calculation of Subscription Income
Particulars
Amount
(₹)
Subscription received during 2017-18
6,85,000
Subscription outstanding in 2017-18
54,000
Subscription received in advance in 2016-17
41,000
Subscription outstanding in 2016-17
(65,000)
Subscription received in advance in 2017-18
(25,000)
Credited to Income and Expenditure Account
6,90,000
|
Income and Expenditure Account
for the year ending March 31, 2018
|
|||||||
| Dr. |
|
Cr. | |||||
|
Expenditure
|
Amount
(₹)
|
Income
|
Amount (₹)
|
||||
|
|
Subscriptions |
6,90,000
|
|||||
|
|
|
||||||
|
Balance Sheet
as on March 31, 2018
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount (₹)
|
| Subscriptions Received in Advance |
25,000
|
Subscriptions Outstanding |
54,000
|
|
|
|
||
|
Balance Sheet
as on March 31, 2017
|
|||
|
Liabilities
|
Amount
(₹)
|
Assets
|
Amount (₹)
|
| Subscriptions Received in Advance |
41,000
|
Subscriptions Outstanding |
65,000
|
Working Notes:
WN1: Calculation of Subscription Income
|
Particulars
|
Amount
(₹)
|
| Subscription received during 2017-18 |
6,85,000
|
| Subscription outstanding in 2017-18 |
54,000
|
| Subscription received in advance in 2016-17 |
41,000
|
| Subscription outstanding in 2016-17 |
(65,000)
|
| Subscription received in advance in 2017-18 |
(25,000)
|
| Credited to Income and Expenditure Account | 6,90,000 |
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