How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?

Case I During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.

Case II During the year ended 31st March, 2019, 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, 2019

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount

(₹)

Entrance Fees

1,00,000

Case 2

Income and Expenditure Account

for the year ended March 31, 2019

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount

(₹)

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, 2019?

	1st April, 2018	31st March, 2019
Outstanding Locker Rent	₹ 4,600	₹ 6,300
Advance Locker Rent	₹ 3,000	₹ 4,000

Locker Rent received during the year ended 31st March, 2019 – ₹ 52,000.

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

		₹
(a)	Subscriptions in arrears on 31st March, 2018	500
(b)	Subscriptions received in advance on 31st March, 2018 for the year ended on 31st March, 2019	1,100
(c)	Total Subscriptions received during the year ended 31st March, 2019 (including ₹ 400 for the year ended 31st March, 2018, ₹ 1,200 for the year ended 31st March, 2020 and ₹ 300 for the year ended 31st March, 2021)	35,400
(d)	Subscriptions outstanding for year ended 31st March, 2019	400

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. In the year ended 31st March, 2019, subscriptions received by Kings Club, Delhi were ₹ 4,09,000 including ₹ 5,000 for the year ended 31st March, 2018 and ₹ 10,000 for the year ended 31st March, 2020. At the end of the year ended 31st March, 2019, subscriptions outstanding for the year ended 31st March, 2019 were ₹ 15,000. The subscriptions due but not received at the end of the previous year, i.e., 31st March, 2018 were ₹ 8,000, while subscriptions received in advance on the same date were ₹ 18,000.

Calculate amount of subscriptions to be credited to Income and Expenditure Account for the year ended 31st March, 2019.

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Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Entrance Fees	1,00,000

Income and Expenditure Account for the year ended March 31, 2019
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Entrance Fees	75,000
		(1,00,000 – 25,000)