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Question
As per Receipts and Payments Account of Kala Club for the year ended 31st March, 2021, subscriptions received were ₹ 4,00,000.
| ₹ | |
| Subscriptions outstanding on 1.4.2020 | 1,00,000 |
| Subscriptions outstanding on 31.3.2021 | 70,000 |
| Subscriptions received in advance on 1.4.2020 | 50,000 |
| Subscriptions received in advance on 31.3.2021 | 80,000 |
Calculate the amount of subscriptions to be shown in Income and Expenditure Account for the year ended 31st March, 2021 as income from subscription.
Solution
| Dr. | In the books of Kala Club Subscription Account |
Cr. | |
| Particulars | Amount (₹) | Particulars | Amount (₹) |
| To Outstanding Subscription (In the beginning) |
1,00,000 | By Advance Subscription (In the beginning) |
50,000 |
| To Income and Exp. A/c (Balancing figure) |
3,40,000 | By Bank A/c (Subscription received during the year) |
4,00,000 |
| To Advance Subscription (Advance at the end) |
80,000 | By Outstanding Subscription (Outstanding at the end) |
70,000 |
| 5,20,000 | 5,20,000 | ||
| Subscription to be shown in Income & Expenditure A/c for the year ended 31st March, 2021. |
|
| Particulars | Amount (₹) |
| Subscription received | 4,00,000 |
| Add: Subscription o/s as on 31.3.2021 | 70,000 |
| Subscription received in advance on 31.4.2020 | 50,000 |
| 5,20,000 | |
| Less: Subscription o/s as on 31.4.2020 | (1,00,000) |
| Subscription received in advance on 31.3.2021 | (80,000) |
| Subscription to be shown in Income & Expenditure A/c | 3,40,000 |
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From the following Receipts and Payments Account of “Matsyodari Engineering College, Aurangabad” for the year ending on 31st March, 2020 and additional informations, prepare Income and Expenditure Account for the year ending 31st March, 2020 and Balance Sheet as on that date:
| Dr. | Receipts and payment Account for the year ended 31st March, 2020 |
Cr. | |
| Receipts | Amount ₹ | Payments | Amount ₹ |
| To Balance b/d | By Salaries to Teaching Staff |
10,00,000 | |
| Cash in hand | 8,000 | By Electricity charges | 50,000 |
| Cash at bank | 1,00,000 | By Books | 64,000 |
| To Interest | 50,000 | By Furniture | 55,000 |
| To Subscription | 30,000 | By Stationary | 24,000 |
| To Life Membership Fees | 40,000 | By Fixed Deposit | 7,00,000 |
| To Donation | 5,00,000 | By Balance c/d | |
| To Tuition fees | 11,50,000 | Cash in hand | 20,000 |
| To Term fees | 2,00,000 | Cash at bank | 2,25,000 |
| To Sundry Receipts | 10,000 | ||
| To Admission Fees (Revenue) | 50,000 | ||
| 21,38,000 | 21,38,000 | ||
Additional information:
| Particulars | 01.04.2019 | 31.03.2020 |
| Books | 7,00,000 | 7,00,000 |
| Furniture | 3,19,000 | 3,00,000 |
| Building fund | 10,00,000 | ? |
| Fixed Deposit | 9,10,000 | ? |
| Capital Fund | 10,37,000 | ? |
Adjustment:
- 50% Donations are for Building fund and the balance is to be treated a Revenue Income.
- Outstanding subscription ₹ 5,300.
- Life Membership fees are to be capitalised.
