Subscription

Q.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended March 31, 2017 and the Balance Sheet as on that date.

Receipt and Payment Account for the year ending March 31, 2017
Receipts		Amount Rs	Payments	Amount Rs
Balance b/d		3, 500	General expenses	900
Subscription: 2015-16 2016-17 2017-18	2, 000 70, 000 3, 000	75, 000	Salary Postage Electricity charges Furniture	16, 000 1, 300 7, 800 26, 500
Sale of old Books		2, 000	Books	13, 000
(Costing Rs 3, 200)			Newspapers	600
Rent from use of hall		17, 000	Meeting expenses	7, 200
Sale of newspapers		400	T.V. set	16, 000
Profit from entertainment		7, 300	Balance c/d	15, 900
		1, 05, 200		1, 05, 200

Additional Information:

(a)	The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on March 31, 2016 were Rs 3, 600.
(b)	On March 31, 2017, salary outstanding amounted to Rs 1, 000, Salary paid included Rs 1, 000 for the year 2012.
(c)	On April 1, 2017 the club owned land and building Rs 25, 000, furniture Rs 2, 600 and books Rs 6, 200.

Q. Income and Expenditure account is prepared on basis.

1. cash
2. accrual
3. only income
4. chronological

Q.

What is the meaning of capital expenditure?

Q.

What is the primary source of income for not for profit organization?

1. Subscription

2. None of these

3. Entrance fee

4. Donations

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. The amount of subscription to be credited to Income and Expennditure account is ______

1. Rs 2, 10, 000

2. Rs 1, 90, 000

3. Rs 3, 60, 000

4. Rs 5, 20, 000

Q.

Subscription received during the year is Rs 50, 000; Subscriptions outstanding at the end of the year Rs 8, 000; Subscription received in advance in previous year is Rs 6, 000. Out of Rs. 6, 000, 2, 000 pertains to the next year. Net Income from subscription for the year will be _____

1. Rs 48000

2. Rs 36000

3. Rs 64000

4. Rs 52000

Q.

The subscription account is classified as a/an ___________.

1. Expense

2. Asset

3. Income

4. Liability

Q.

Receipt and Payment Account of Maitrey Sports Club showed that Rs 68, 500 were received by way of subscriptions for the year ended on March 31, 2017.

The additional information was as under:

1. Subscription Outstanding as on March 31, 2016 were Rs 6, 500,

2. Subscription received in advance as on March 31, 2016 were Rs 4, 100,

3. Subscription Outstanding as on March 31, 2017 were Rs 5, 400,

4. Subscription received in advance as on March 31, 2017 were Rs 2, 500.

Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.

Q.

An advance receipt of subscription from a member of the non-profit organisation is considered as a/an

1. Expense
   

2. Liability
   

3. Asset

4. Equity
   

Q.

Subscription received but not yet earned is considered as a/an ________.

1. Expense

2. Liability

3. Equity

4. Asset

Q.

Receipt and Payment Account of Maitrey Sports Club showed that Rs 68, 500 were received by way of subscriptions for the year ended on March 31, 2006.

The additional information was as under:

1. Subscription Outstanding as on March 31, 2005 were Rs 6, 500,

2. Subscription received in advance as on March 31, 2005 were Rs 4, 100,

3. Subscription Outstanding as on March 31, 2006 were Rs 5, 400,

4. Subscription received in advance as on March 31, 2006 were Rs 2, 500.

Show how that above information would appear in the final accounts for the year ended on March 31, 2006 of Maitrey Sports Club.

Q.

Subscription income for the year is shown on ______ side of income and expenditure account

1. Credited

2. Debited

3. Either A or B

4. None of these

Q.

A receipt of subscription outstanding from a member of the non-profit organisation is considered as a/an __________.

1. A Liability

2. An Expense

3. An Equity

4. An Asset

Q.

Q.

Subscription income for the year is Rs 5, 000. Amount received in advance for the next year is Rs 300. Amount outstanding for current year was Rs 400. The amount received during the year is ___

1. Rs 4, 000

2. Rs 5, 100

3. Rs 4, 900

4. Rs 4, 600

Q.

Rs. 10, 000 received as the annual membership subscription. Out of this, Rs.2, 000 is pertaining to the previous accounting period whereas Rs.1, 000 is receivable at the end of the current accounting period. Of this 1, 000, 200 is peratins to the previous accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting

1. Rs. 8, 000

2. Rs. 10000

3. Rs. 9, 000

4. Rs. 12, 000

Q.

When should you recognize revenue?

Q.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2006 and the Balance Sheet as on that date.

Receipt and Payment Account for the year ending December 31, 2006
Receipts		Amount Rs	Payments	Amount Rs
Balance b/d		3, 500	General expenses	900
Subscription: 2005 2006 2007	1, 800 70, 000 3, 000	75, 000	Salary Postage Electricity charges Furniture	16, 000 1, 300 7, 800 26, 500
Sale of old Books		2, 000	Books	13, 000
(Costing Rs 3, 200)			Newspapers	600
Rent from use of hall		17, 000	Meeting expenses	7, 200
Sale of newspapers		400	T.V. set	16, 000
Profit from entertainment		7, 300	Balance c/d	15, 900
		1, 05, 200		1, 05, 200

Additional Information:

(a)	The club has 100 members each paying an annual subscription of Rs900. Subscriptions outstanding on December 31, 2005 were Rs 3, 600.
(b)	On December 31, 2006 , salary outstanding amounted to Rs 1, 000, Salary paid included Rs 1, 000 for the year 2005.
(c)	On January 1, 2006 the club owned land and building Rs 25, 000, furniture Rs 2, 600 and books Rs 6, 200.

Q.

What is the difference between receipts and payments and income and expenditure?

Q. State whether the following statements are True or False.

There is no difference between Receipts and Payment Account and Income and Expenditure Account.

Q.

The main source of income for non-profit concern is:

1. Subscription

2. Sales

3. Dividend on investment

4. Entrance fee

Q. Objective Type Questions.
Answer in one sentence only.

What is deferred revenue expenditure?

Q. Income & Expenditure A/c is prepared by transfer of :
(I) Nominal accounts
(II) Real accounts
(III) Personal accounts
The correct answer is ___________________.

1. (II) and (III) only
2. (I) and (II) only
3. All (I), (II) and (III)
4. (I) only

Q. Select the most appropriate answer the alternatives given below and rewrite the Sentences.

Under Single entry System only _______________.
a) Personal accounts and cash A/c are opened
b) Real accounts are opened
c) Nominal accounts are opened
d) Real and nominal accounts are opened,

Q. Despite limitations of size and resources, many people continue to prefer sole proprietorship over other forms of organisation. Why? Give merits of sole proprietorship.

Q. Match List-I(Items of expenditure and receipt) with List-II(Nature of expenditure and receipt) and select the correct answer using the codes given the lists.

List-I	List-II
I. Compensation paid to retrenched workers of the factory for the loss of service	(a) Capital expenditure
II. Legal expenses incurred in connection with the purchase of a plot of land	(b) Capital receipt
III. Compensation received from the government for the compulsory removal of a business premises to another place	(c) Revenue expenditure
IV. Sale proceeds of merchandise(goods)	(d) Revenue receipt

1. I-(a), II-(c), III-(d), IV-(b)
2. I-(a), II-(c), III-(b), IV-(d)
3. I-(c), II-(a), III-(d), IV-(b)
4. I-(c), II-(a), III-(b), IV-(d)

Q. 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.

Q.

How is revenue recognition under IFRS? Find the Answer at BYJUS

Q. Select the most appropriate answers from the alternatives given below and rewrite the sentences.

‘Outstanding subscription’ at the end of Accounting year represents _____________.
a) a liability
b) an expenditure
c) an asset
d) a capital fund

Q.

Give some examples of outstanding expenses?