Question

From the following information calculate the amount of subscriptions to be credited to the Income & Expenditure Account for the year 2016-17:

$\begin{array}{cc}& \text{Rs}\\ \text{Subscriptions received during the year}& 80,000\\ \text{Subscriptions outstanding on 31st March, 2016}& 26,000\\ \text{Subscriptions outstanding on 31st March, 2017}& 6,000\\ \text{Subscriptions received in Advance on 31-3-2016}& 15,000\\ \text{Subscriptions received in Advance on 31-3-2017}& 10,000\\ \text{Subscriptions of Rs 2,000 are still in arrears for the year 2015-16}& \end{array}$

Answer 1

Income and Expenditure Account
for the year ending on March 31, 2017 Dr. Cr.
$\begin{array}{ccccc}\text{Expenditure}& \text{Rs}& \text{Income}& & \text{Rs}\\ & & \text{Subscription}& 80,000& \\ & & \text{Less :}\text{Received out of}& & \\ & & \text{subscritpion}& & \\ & & \text{outstanding on}& & \\ & & \text{31st March, 2016}& & \\ & & \text{(Rs 26,000 -}& & \\ & & \text{Rs 2,000)}& \underset{–}{24,000}& \\ & & & 56,000& \\ & & \text{Add :}\text{Outstanding}& & \\ & & \text{for 2016-17}& & \\ & & \text{(Rs 6,000 -}& & \\ & & \text{Rs 2,000)}& \underset{–}{4,000}& \\ & & & 60,000& \\ & & \text{Add :}\text{Received in}& & \\ & & \text{Advance on}& & \\ & & \text{March 31,2016}& \underset{–}{15,000}& \\ & & & 75,000& \\ & & \text{Less :}\text{Received in}& & \\ & & \text{Advance on}& & \\ & & \text{March 31, 2017}& \underset{–}{10,000}& \\ & & & & 65,000\end{array}$