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प्रश्न
What is subscription? How is it calculated?
उत्तर
Subscription is the main source of income for an NPO besides entrance fees, donations, grants, etc. Subscriptions refer to the amount of money paid by the members on periodic basis for keeping their membership with the organisation alive. It is paid monthly, quarterly, half yearly or annually by the members.
It is shown in the debit side of the Receipt and Payment Account with the total amount received during the year that may be related to the current period and to the previous and next accounting period.
While calculating subscription for the current period, advance subscription received for the current period in the previous period and outstanding subscription for the current period are added to the subscription received during the current period. Whereas, on the other hand, advance subscription received for the next accounting period during the current period and outstanding subscription for the preceding period are deducted from the subscription received during the current period.
Calculation of Subscription
| Subscription received during the year | *** | |
| Add: Subscription received (in advance) during previous year for current year | *** | |
| Add: Subscription outstanding at the end of the year | *** | |
| *** | ||
| Less: Subscription received in advance for the next year | *** | |
| Less: Subscription outstanding for the previous year | *** | *** |
| ## Subscription shown in Income and Expenditure Account | *** |
## This subscription is related to the current accounting period and is shown in the Income side of the Income and Expenditure Account.
APPEARS IN
संबंधित प्रश्न
Show the treatment of the following items by a Not-for-Profit Organisation:
(i) Annual subscription
(ii) Specific donation
(iii) Sale of fixed assets
(iv) Sale of old periodicals
(v) Sale of sports materials
(vi) Life membership fee
Show the treatment of items of Income and Expenditure Account when there is a specific fund for those items.
In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2018 and ₹ 10,000 for the year ended 31st March, 2020. At the end of the year ended 31st March, 2019, subscriptions outstanding for the year ended 31st March, 2019 were ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 were ₹ 8,000, while subscriptions received in advance on the same date were ₹ 18,000.
Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.
Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2019 for each of the following cases:
| Particulars | ₹ | |
| Case I. |
(i) Subscriptions collected during the year ended 31st March, 2019
(ii) Subscriptions in arrears for the year ended 31st March, 2019
(iii) Subscriptions received in advance for the year ended 31st March, 2020 |
2,50,000 6,000 5,000 |
| Case II. | (i) Subscriptions collected during the year ended 31st March, 2019 (ii) Subscriptions for the year ended 31st March, 2019 collected in the year ended 31st March, 2018 (iii) Subscriptions unpaid for the year ended 31st March, 2019 |
49,000 3,000 2,000 |
| Case III. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019 |
25,000 3,000 5,000 |
| Case IV. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2019 (iii) Subscriptions not yet collected for the year ended 31st March, 2019 (iv) Subscriptions received in advance for the year ended 31st March, 2020 |
80,000 5,000 8,000 2,000 |
| Case V. | (i) Subscriptions received during the year ended 31st March, 2019 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2018 (iii) Subscriptions received in advance on 31st March, 2018 (iv) Subscriptions received in advance on 31st March, 2019 (v) Subscriptions not yet collected for the year ended 31st March, 2019 |
90,000 5,000 3,000 4,000 6,000 |
From the following particulars, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:
| ₹ | ||
| (a) | Subscriptions in arrears on 31st March, 2018 | 500 |
| (b) | Subscriptions received in advance on 31st March, 2018 for the year ended on 31st March, 2019 | 1,100 |
| (c) | Total Subscriptions received during the year ended 31st March, 2019 (including ₹ 400 for the year ended 31st March, 2018, ₹ 1,200 for the year ended 31st March, 2020 and ₹ 300 for the year ended 31st March, 2021) | 35,400 |
| (d) | Subscriptions outstanding for year ended 31st March, 2019 | 400 |
From the following information, calculate amount of subscriptions outstanding for the year ended 31st March, 2019:
A club has 200 members each paying an annual subscription of ₹ 1,000. The Receipts and Payments Account for the year showed a sum of ₹ 2,05,000 received as subscriptions. The following additional information is provided :
| ₹ | |
| Subscriptions Outstanding on 31st March, 2018 | 30,000 |
| Subscriptions Received in Advance on 31st March, 2019 | 40,000 |
| Subscriptions Received in Advance on 31st March, 2018 | 14,000 |
On the basis of information given below, calculate the amount of medicines to be debited to the Income and Expenditure Account of Good Health Hospital for the year ended 31st March, 2019:
| Particulars | 1st April, 2018 (₹) |
31st March, 2019 (₹) |
| Stock of Medicines | 1,75,750 | 1,44,650 |
| Creditors for Medicines | 15,06,900 | 18,20,700 |
Medicines purchased during the year ended 31st March, 2019 were ₹ 60,80,700.
Calculate amount to be posted to the Income and Expenditure Account for the year ended 31st March, 2019:
| (i) | Amount paid for stationery during the year ended 31st March,2019 – ₹5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250 |
|
| (ii) | Stock of Stationery in Hand on 1st April, 2018 – ₹ 1,500; Payment made for Stationery during the year ended 31st March, 2019 – ₹ 5,400; Stock of Stationery in Hand on 31st March, 2019 – ₹ 250. |
|
| ₹ | ||
| (iii) | Stock of Stationery on 1st April, 2018 | 1500 |
| Creditors for Stationery on 1st April, 2018 | 1,000 | |
| Amount paid for Stationery during the year | 5,400 | |
| Stock of Stationery on 31st March, 2019 | 250 |
On the basis of the following information, calculate amount that will appear against the term 'Stationery Used' in the Income and Expenditure Account for the year ended 31st March, 2019:
| ₹ | |
| Stock of Stationery as at 1st April, 2018 | 12,000 |
| Creditors for Stationery as at 1st April, 2018 | 25,600 |
| Amount paid for Stationery during the year ended 31st March, 2019 | 140,000 |
| Stock of Stationery as at 31st March, 2019 | 23,200 |
| Creditors for Stationery as at 31st March,2019 | 24,000 |
Calculate the amount of sports material to be transferred to income and Expenditure Account of Raman Bhalla Sports Club, Ludhiana, for the year ended 31st March, 2018 :
| Particulars | (₹) | ||
| (i) | Sports material sold during the year (Book Value ₹ 50,000) | 56,000 | |
| (ii) | Amount paid to creditors for sports materials | 91,000 | |
| (iii) | Cash purchase of sports material | 40,000 | |
| (iv) | Sports material as on 31st March, 2017 | 50,000 | |
| (v) | Sports material as on 31st March, 2018 | 55,000 | |
| (vi) | Creditors for sports material as on 31st March, 2017 | 37,000 | |
| (vii) | Creditors for sports material as on 31st March, 2018 | 45,000 | |
Delhi Youth Club has furniture at a value of ₹ 2,20,000 in its book on 31st March, 2018. It sold old furniture, having book value of ₹ 20,000 as at 1st April , 2018 at a loss of 20% on 31st December, 2018. Furniture is to be depreciated @ 10% p.a. Furniture costing ₹ 1,50,000 was also purchased on 1st October, 2018.
Prepare Furniture Account for the year ended 31st March, 2019.
In the year ended 31st March, 2019, salaries paid amounted to ₹ 2,04,000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March, 2019 from the following additional information:
| ₹ | |
| Prepaid Salaries on 31st March, 2018 | 24,000 |
| Prepaid Salaries on 31st March, 2019 | 12,000 |
| Outstanding Salaries on 31st March, 2018 | 18,000 |
| Outstanding Salaries on 31st March, 2019 | 15,000 |
Choose the appropriate alternative from the given options:
Which of the following is not a capital receipt?
State with reason how the following item will be treated while preparing the 'Income and Expenditure Account' and 'Balance Sheet' of a Not-for-Profit Organisation:
Life membership fees
State with reason how the following item will be treated while preparing the 'Income and Expenditure Account' and 'Balance Sheet' of a Not-for-Profit Organisation:
Government Grant for the construction of a building.
