Question

From the following information, calculate the amount of subscription to be credited to Income and Expenditure Account for the year 2017-18.

Subscription received during the year Rs 1,60,000

Subscription outstanding as at 31-03-2017 Rs 50,000

Subscription outstanding as at 31-03-2018 Rs 12,000

Subscription received in advance on 31-03-2017 Rs 30,000

Subscription received in advance on 31-03-2018 Rs 20,000

Subscription of Rs 5,000 are still in arrears for the year ended on 31-03-2017.

Answer 1

$\text{INCOME AND EXPENDITURE ACCOUNT}\text{for the year ended 31st March, 2018}\begin{array}{cccc}\text{Expenditure}& \text{Amount}& \text{Income}& \text{Amount}\\ & \left(\text{Rs}\right)& & \left(\text{Rs}\right)\\ & & \text{By Subscription (Note 1)}& 1,32,000\end{array}$

Working Note 1

$\text{Subscription received during the year}=1,60,000\text{+ Outstanding of 2018 (12,000 - 5,000)}=7,000\text{+ Advance of 2017}=30,000\text{(-) Outstanding of 2017}=(45,000)\text{(-) Advance of 2018}=(20,000)=\overline{\underset{–}{1,32,000}}$