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Income and Expenditure Account

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Question

How do you treat subscriptions in income and expenditure accounts?

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Solution

The subscription sums are treated as income receipts. Membership subscription got from individuals is credited to Income and Expenditure Account on an accrual basis. For example, aggregate sum receivable from every one of the individuals ought to be considered as pay for the year.

Also see:

Income and Expenditure Account

Difference Between Capital Expenditure and Revenue Expenditure

Classification of Expenditure

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Similar questions

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. From the following information, calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2019:

		₹
1st April, 2018	Subscriptions in Arrears	50,000
	Subscriptions Received in Advance	30,000
31st March, 2019	Subscriptions in Arrears	25,000
	Subscriptions Received in Advance	70,000

Subscriptions received during the year ended 31st March, 2019 – ₹ 3,00,000
Subscription still in arrears for the year 2017 – 18 – ₹ 10,000.

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. How to treat accrued interest in income and expenditure account and in balance sheet?

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

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