Numerical Example of Subscription

Q. Bat and Ball are partners sharing the profits in the ratio of 2 : 3 with capitals of ₹ 1, 20, 000 and ₹ 60, 000 respectively. On 1st October, 2017, Bat and Ball granted lonas of ₹ 2, 40, 000 and ₹ 1, 20, 000 respectively to the firm. Bat had allowed the firm to use his property for business for a monthly rent of ₹ 5, 000. The loss for the year ended 31st March, 2018 before rent and interest amounted to ₹ 9, 000. Show distribution of profit/loss.

Q.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2013 and the Balance Sheet as on that date.


Additional Information:
(a) The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on December 31, 2012 were Rs 3, 600.
(b) On December 31, 2013 , salary outstanding amounted to Rs 1, 000, Salary paid included Rs 1, 000 for the year 2012.
(c) On January 1, 2013 the club owned land and building Rs 25, 000, furniture Rs 2, 600 and books Rs 6, 200.

Q.

Subscription received in cash during the year amounted to Rs. 40, 000; subscription outstanding at the end of the previous year was Rs. 1, 500 and outstanding at the end of the current year was Rs. 2, 000. Subscription received in advance for next year was Rs. 800. The amount credited to Income and Expenditure Account will be:

1. Rs. 38700

2. Rs. 39700

3. Rs. 40300

4. Rs. 41300

Q.

From the following particulars, prepare Income and Expenditure account:

Details	Amount Rs
Fees collected, including Rs 80, 000 on account of the previous year	5, 20, 000
Fees for the year outstanding	30, 000
Salary paid , including Rs 5, 000 on account of the previous year	68, 000
Salary outstanding at the end of the year	3, 000
Entertainment expenses	8, 000
Tournament expenses	25, 000
Meeting Expenses	18, 000
Traveling Expenses	7, 000
Purchase of Books and Periodicals, including Rs 31, 000 for purchase of Books	40, 000
Rent	15, 000
Postage, telegrams and telephones	6, 000
Printing and Stationery	18, 000
Donations received	25, 000

Q.

Subscription received in cash during the year amounted to Rs. 60, 000; subscription received in advance for next year was Rs. 3, 000 and received in advance during the previous year was Rs. 2, 000. Subscription in arrear at the end of the current year was Rs. 5, 400. The amount credited to Income and Expenditure Account will be:

1. Rs. 66400

2. Rs. 53600

3. Rs. 55600

4. Rs. 64400

Q.

Following is the Receipt and Payment Account of Women’s Welfare Club for the year ended December 31, 2017:

Receipt and Payment Account for the year ending December 31, 2017
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d	7, 250	Salary	12, 500
Subscriptions	81, 750	Stationery	1, 700
Donations	3, 000	Electricity charges	9, 550
Grant from Government	15, 000	Insurance	7, 500
Sale of newspapers	300	Equipments	30, 000
Proceeds of charity show	16, 500	Petty expenses	500
Interest on investments @ 10% for full year	7, 000	Expenses on charity show	12, 900
Sundries income	400	Newspapers	1, 000
		Lectures fee	16, 500
		Honorarium to Secretary	12, 000
		Balance c/d	27, 050
	1, 31, 200		1, 31, 200

Additional Information:

	01.01.2017 Rs	31.12.2017 Rs
Outstanding salaries	1, 200	1, 800
Insurance prepaid	700	300
Subscription outstanding	3, 750	2, 500
Subscription received in advanced	1, 750	1, 000
Electricity charges outstanding	—	1, 250
Stock of stationery	2, 250	700
Equipments	25, 600	50, 200
Building	1, 20, 000	1, 14, 000

Prepare Income and Expenditure Account for the year ended December 31, 2017 and Balance Sheet as on that date.

Q. From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:

₹
1st April, 2017 Subscriptions in Arrears 50, 000
Subscriptions Received in Advance 30, 000
31st March, 2018 Subscriptions in Arrears 25, 000
Subscriptions Received in Advance 70, 000

Subscriptions received during the year ended 31st March, 2018 - ₹ 3, 00, 000

Q.

What you mean by outstanding subscription?

Q. Subscription received but not yet earned is considered as a/an in the balance sheet.

1. expense
2. equity
3. liability
4. asset

Q.

Following Receipt and Payment Account was prepared from the cash book of Delhi Charitable Trust for the year ending December 31, 2017

Receipt and Payment Account for the year ending December 31, 2017
Receipts	Amount Rs	Payments	Amount Rs
Balance b/d		Charity	11, 500
Cash in hand	11, 500	Rent and taxes	3, 200
Cash at bank	12, 600	Salary	6, 000
Donation	9, 000	Printing	600
Subscription	42, 800	Postage	300
Legacies	18, 000	Advertisements	4, 500
Interest on investment	4, 500	Insurances	2, 000
Sale of old newspapers	200	Furniture	21, 600
		Investment	23, 000
		Balance c/d:
		Cash in hand	9, 900
		Cash at bank	16, 000
	98, 600		98, 600

Prepare Income and expenditure account for the year ended December 31, 2017, and a balance sheet as on that date after the following adjustments:

(a)	It was decided to treat one-third of the amount received on account of donation as income.
(b)	Insurance premium was paid in advance for three months.
(c)	Interest on investment Rs1, 100 accrued was not received.
(d)	Rent Rs600: salary Rs900 and advertisement expenses Rs1, 000 outstanding as on December 31, 2017.

Q.

What is the journal entry for deferred revenue?

Q.

Q. In the year ended 31st March, 2018, salaries paid amounted to ₹ 2, 04, 000. Ascertain the amount chargeable to the Income and Expenditure Account for the year ended 31st March , 2018 from the following additional information:

	₹
Prepaid Salaries on 31st March, 2017	24, 000
Prepaid Salaries on 31st March, 2018	12, 000
Outstanding Salaries on 31st March, 2017	18, 000
Outstanding Salaries on 31st March, 2018	15, 000

Q.

Write a brief note on ‘Minimum Subscription’.

Q.

Write a brief note on ‘Minimum Subscription’.

Q. From the following information , calculate amount of subscriptions outstanding for the year ended 31st March, 2018:
A club has 200 embers 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, 2017 30, 000
Subscriptions Received in Advance on 31st March, 2018 40, 000
Subscriptions Received in Advance on 31st March, 2017 14, 000

Q.

Subscriptions received in cash during the year Rs. 5, 000, the amount received in advance for the next year is Rs. 300. Amount outstanding for the current year was Rs. 400. The amount to be credited to the Income and Expenditure Account is-

1. 4000

2. 5100

3. 4200

4. 4600

Q. From the following particulars , calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
₹
(a) Subscriptions in arrears on 31st March , 2017 500
(b) Subscriptions received in advance on 31st March, 2017 for the year ended on 31st March, 2018 1, 100
(c) Total Subscriptions received during the year ended 31st March , 2018 35, 400
(including ₹ 400 for the year ended 31st March , 2017, ₹ 1, 200 for the year ended
31st March, 2019 and ₹ 300 for the year ended 31st March, 2020)
(d) Subscriptions outstanding for year ended 31st March , 2018 400

Q. Calculate amount of subscriptions which will be treated as income for the year ended 31st March, 2018 for each of the following cases:

	Particulars	₹
Case I.	(i) Subscriptions collected during the year ended 31st March, 2018 (ii) Subscriptions in arrears for the year ended 31st March, 2018 (iii) Subscriptions received in advance for the year ended 31st March, 2019	2, 50, 000 6, 000 5, 000
Case II.	(i) Subscriptions collected during the year ended 31st March, 2018 (ii) Subscriptions for the year ended 31st March, 2018 collected in the year ended 31st March, 2017 (iii) Subscriptions unpaid for the year ended 31st March, 2018	49, 000 3, 000 2, 000
Case III.	(i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018 (iii) Subscriptions not yet collected for the year ended 31st March, 2018	25, 000 3, 000 5, 000
Case IV.	(i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding in the beginning of the year ended 31st March, 2018 (iii) Subscriptions not yet collected for the year ended 31st March, 2018 (iv) Subscriptions for the year ended 31st March, 2019 received in advance	80, 000 5, 000 8, 000 2, 000
Case V.	(i) Subscriptions received during the year ended 31st March, 2018 (ii) Subscriptions outstanding at the end of the year ended 31st March, 2017 (iii) Subscriptions received in advance on 31st March, 2017 (iv)Subscriptions received in advance on 31st March, 2018 (v) Subscriptions not yet collected for the year ended 31st March, 2018	90, 000 5, 000 3, 000 4, 000 6, 000

Q.

Subscription received during the year Rs. 1, 80, 000; Subscriptions outstanding at the end of the year Rs. 20, 000; Subscriptions received in advance at the end of the year Rs. 10, 000. Subscription outstanding at the end also includes 2, 000 pertaining to previous year. The amount of subscription to be credited to Income and Expenditure A/c will be-

1. 210000

2. 190000

3. 170000

4. 200000

Q.

Subscription income for the year is Rs 52, 000; Subscriptions outstanding at the end of the year Rs. 8, 000; Subscription outstanding at the beginning of the year Rs. 6, 000. Subscription received during the year will be

1. 52000

2. 36000

3. 48000

4. 64000

Q.

Subscriptions received in cash during the year Rs. 15, 000, the amount received in advance for the next year is Rs. 1, 800. The amount outstanding for the current year was Rs.1, 600. The amount to be credited to the Income and Expenditure Account is

1. 12800

2. 15200

3. None of these

4. 14800

Q.

Following Receipt and Payment Account was prepared from the cash book of Delhi CharitableTrust for the year ending December 31, 2007.


Prepare Income andexpenditure account for the year ended December 31, 2007, and balance sheet as on that date after the following adjustments:
(a) It was decided to treat one-third of the amount received on account of donation as income.
(b) Insurance premium was paid in advance for three months. (c) Interest on investment Rs1, 100 accrued was not received.
​​​​​​​(d) Rent Rs600: salary Rs900 and advertisement expenses Rs1, 000 outstanding as on December 31, 2007.

Q. How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2018 and Balance Sheets as at 31st March, 2017 and 2018 ?
₹
Subscriptions received during the year ended 31st March, 2018 3, 58, 500
Subscriptions outstanding on 31st March , 2017 30, 000
Subscriptions received in Advance on 31st March, 2017 22, 500
Subscriptions received in Advance on 31st March, 2018 13, 500
Subscriptions outstanding on 31st March , 2018 37, 500
(including ​ ₹ 12, 500 for the year ended 31st March, 2017)

Q. A receipt of subscription outstanding from a member of the NPO is considered as a/an in the balance sheet.

1. donation
2. corpus fund
3. liability
4. asset

Q.

State the meaning of 'Not-for-Profit' Organisations.

Q.

What is subscription? How is it calculated?

Q. Hp Ltd. has 1, 00, 000;8% Debentures of ₹ 50 each due for redemption in five equal annual installments starting from 30th June, 2015. Debentures Redemption Reserve has a balnce of ₹ 5, 00, 000 on that date . Pass journal entries.

Q. Subscription received in 2016-17 is Rs.3, 80, 000 & received in advance as on 31.03.2016 is Rs.20, 000. The subscription income for the year 2016-17 is .

1. Rs. 3, 40, 000
2. Rs.3, 60, 000
3. Rs.3, 80, 000
4. Rs. 4, 00, 000

Q.

What is an ex gratia payment?