How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2018 in each of the following alternative cases?

Case I During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.

Case II During the year ended 31st March, 2018, Entrance Fees received was ₹ 1,00,000.Out of this , ₹ 25,000 was received from individuals whose membership is not yet approved.

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Solution

Case 1

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount

(Rs)

Entrance Fees

1,00,000

I

Case 2

Income and Expenditure Account

for the year ended March 31, 2018

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount

(Rs)

Entrance Fees

75,000

(1,00,000 – 25,000)

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Similar questions

How will you deal with the Entrance Fees while preparing the final accounts of New Delhi Sports Club for the year ended 31st March, 2017 in each of the following cases:

Case 1. During the year 2016-17, Entrance Fees received Rs
1,20,000.

Case 2. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as ' Revenue Receipt'.

Case 3. During the year 2016-17, Entrance Fees received Rs 1,20,000. It is the policy of the club to treat the Entrance Fees as 'Capital Receipt'.

Case 4. During the year 2016-17, Entrance Fees received Rs 1,20,000. According to the policy of the club, 30% of the Entrance Fees is to be capitalised.

Q. How are the following items dealt with while preparing Income and Expenditure Account of a club for the year ended 31st March, 2018?

	1st April, 2017	31st March, 2018
Outstanding Locker Rent	₹ 4,600	₹ 6,300
Advance Locker Rent	₹ 3,000	₹ 4,000

Locker Rent received during the year ended 31st March, 2018

—

₹ 52,000.

Q. How are the following items of subscriptions shown in the Income and Expenditure Account for the year ended 31st March, 2019 and Balance Sheets as at 31st March, 2018 and 2019?

	₹
Subscriptions received during the year ended 31st March, 2019	3,58,500
Subscriptions outstanding on 31st March, 2018	30,000
Subscriptions received in Advance on 31st March,2018	22,500
Subscriptions received in Advance on 31st March, 2019	13,500
Subscriptions outstanding on 31st March, 2019	37,500

(including ₹ 12,500 for the year ended 31st March, 2018)

Q. From the following particulars , calculate amount of subscriptions to be credited to the Income and Expenditure Account for the year ended 31st March, 2018:
₹
(a) Subscriptions in arrears on 31st March ,2017 500
(b) Subscriptions received in advance on 31st March, 2017 for the year ended on 31st March, 2018 1,100
(c) Total Subscriptions received during the year ended 31st March , 2018 35,400
(including ₹ 400 for the year ended 31st March , 2017, ₹ 1,200 for the year ended
31st March, 2019 and ₹ 300 for the year ended 31st March, 2020)
(d) Subscriptions outstanding for year ended 31st March , 2018 400

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

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Income and Expenditure Account for the year ended March 31, 2018
Dr.				Cr.
Expenditure	Amount (Rs)	Income	Amount (Rs)
		Entrance Fees	1,00,000

Income and Expenditure Account for the year ended March 31, 2018
Dr.				Cr.
Expenditure	Amount (Rs)	Income	Amount (Rs)
		Entrance Fees	75,000
		(1,00,000 – 25,000)