Question

From the following information, calculate the amount of subscriptions outstanding as on 31st March, 2009 :

A club has 250 members each paying an annual subscription of Rs 1,000. The Receipts & Payments account for the year showed a sum of Rs 2,65,000 received as subscriptions. The following additional information is provided.

$\begin{array}{cc}& \text{Rs}\\ \text{Subscriptions Outstanding on 31st March, 2008}& 40,000\\ \text{Subscriptions Received in advance on 31st March, 2009}& 30,000\\ \text{Subscriptions Received in advance on 31st March, 2008}& 12,000\end{array}$

Answer 1

$\begin{array}{cc}& \text{Rs}\\ \text{Subscription received during the year 2008-09}& 2,65,000\\ \text{Add : Received in advance on 31st March, 2008}& \underset{–}{12,000}\\ & 2,77,000\\ \text{Less : Received in advance on 31st March, 2009}& \underset{–}{30,000}\\ & 2,47,000\\ \text{Less :Outstanding on 31st March, 2008}& \underset{–}{40,000}\\ & 2,07,000\\ \text{Total Subscription to be shown in Income}\&\text{Expenditure A/c :}& \\ \text{250 members}\times \text{Rs, 1,000}& \underset{–}{2,50,000}\\ \text{Outstanding as on 31st March, 2009}& \underset{–}{43,000}\end{array}$

Alternative Solution:

Subscription Account Dr. Cr.
$\begin{array}{cccc}& \text{Rs}& & \text{Rs}\\ \text{Balance b/d (Outstanding on}& & \text{Balance b/d (Advance on}& \\ \text{March 31, 2008}& 40,000& \text{March 31, 2008}& 12,000\\ \text{Income and Expenditure A/c}& & \text{Receipts}\&\text{Payments A/c}& 2,65,000\\ \text{(250 members}\times \text{Rs 1,000)}& 2,50,000& \text{Balance c/d (Balancing}& \\ \text{Balance c/d (Advance on}& & \text{figure, being Outstanding on}& \\ \text{March 31, 2009)}& 30,000& \text{March 31, 2009)}& 43,000\\ & \underset{–}{\overline{3,20,000}}& & \underset{–}{\overline{3,20,000}}\end{array}$