PRACTICAL PROBLEMS

(Presentation of Subscriptions only)

Balance Sheet as on 01/04/2012

Liabilities

Amount

Rs

Amount

Rs

Assets

Amount

Rs

Amount

Rs

Subscription received in

Outstanding subscriptions

Advance for 2012-2013

15,000

2010-2011

20,000

2011-2012

30,000

50,000

Receipts and Payments Account for the year ending on 31-03-2013

Dr.

Cr.

Receipts

Amount

Rs

Amount

Rs

Payments

Amount

Rs

Amount

Rs

To subscriptions

2010-2011

16,000

2011-2012

25,000

2012-2013

3,30,000

2013-2014

19,000

Adjustment:
Outstanding Subscription for 2012-2013 is Rs 22,000. With the above information present the item 'Subscription’ in Income and expenditure Account and Balance sheet for the year ended on 31^st March 2013.

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Solution

Income and Expenditure Account

for the year ending March 31,2013

Dr.

Cr.

Expenditure

Amount

(Rs)

Income

Amount (Rs)

Subscription

3,30,000

Add: Outstanding at the end

22,000

Add: Advance in the beginning

15,000

3,67,000

Balance Sheet

as on March 31,2013

Liabilities

Amount

(Rs)

Assets

Amount (Rs)

Outstanding Subscription

Subscription Received in Advance at the end

15,000

(Outstanding for 2010-11 is Rs 4,000 + outstanding for 2011-12 + Rs 5,000 and Outstanding for2 012-13 is Rs 22,000)

31,000

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Similar questions

PRACTICAL PROBLEMS

(Presentation of Subscriptions only)
With the information given below regarding ‘Subscription’ give accounting effects of it in the Final Accounts of a ‘Not for Profit’ concern.

Receipts and Payments Account for year ending on 31-03-2013
Dr.	Cr.
Receipts		Amount Rs	Amount Rs	Payments	Amount Rs	Amount Rs
To subscriptions received			4,87,500

Additional Information:

• Subscription received during the year, includes

• Subscriptions received for 2011-2012 Rs 17,500 and for 2013-2014 Rs 15,000

• There are 500 members of the concern and each member pays Rs 1,000 as annual subscription.

• During the year 2011-2012 subscription received for the year 2012-2013 was Rs 25,000.

From the following extracts of the Receipts and Payments Account and the additional information, you are required to compute the income from subscription for the year ending on December 31, 2012 and show the subscription items in the income and Expenditure Account and the Balance Sheet as on 31-12-2012

AN EXTRACT OF RECEIPTS AND PAYMENTS ACCOUNT

for the year ending on 31st December, 2012

$\begin{matrix} Receipts & Amount & Payments & Amount (Rs) & (Rs) To Subscriptions : 2011 & 9, 000 2012 & 1, 34, 400 2013 & 5, 200 \end{matrix}$

Information : Subscription outstanding as on 31-12-2011 Rs 9,200. Subscription received in advance as on 31-12-2011 Rs 2,800 (including Rs 800 for 2012). There are 1,440 members each playing an annual subscription of Rs 100.

From the following Receipt and Payment Account of a club, prepare Income and Expenditure Account for the year ended December 31, 2013 and the Balance Sheet as on that date.

Additional Information:
(a) The club has 100 members each paying an annual subscription of Rs 900. Subscriptions outstanding on December 31, 2012 were Rs 3,600.
(b) On December 31, 2013 , salary outstanding amounted to Rs 1,000, Salary paid included Rs 1,000 for the year 2012.
(c) On January 1, 2013 the club owned land and building Rs 25,000, furniture Rs 2,600 and books Rs 6,200.

Following is the Receipt and Payment Account of Indian Sports Club for the year ended 31-3-2014 :

$\begin{matrix} Receipts & Rs & Payments & Rs Balance b/d & 10, 000 & Salary & 15,000 Subscriptions & 52, 000 & Billiard Table & 20, 000 Entrance Fee & 5, 000 & Office Expenses & 6, 000 Tournament Fund & 26, 000 & Tournament Expenses & 31, 000 Sale of old newspapers & 1, 000 & Sports Equipment & 40, 000 Legacy & 37, 000 & Balance c/d & 19, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 31, 000 - -------- - \end{matrix}$

Other Information :

On 31-3-2014 Subscription outstanding was Rs 2,000 and on 31-3-2013 subscription outstanding was Rs 3,000 Salary outstanding on 31-3-2014 was Rs 1,500.

On 1-4-2013 the club had building Rs 75,000, furniture Rs 18,000, 12% investment Rs 30,000 and sports equipment Rs 30,000. Depreciation charged on these items including Billiard Table was 10%.

Prepare Income and Expenditure Account of the Club for the year ended 31-3-2014 and a Balance Sheet as at that date.

PRACTICAL PROBLEMS

(Loss on Sale of Asset)

Following is the Receipts and Payments Account of Chamber of Commerce, Kolhapur, for the year ending 31/03/2012 and some additional information. You are required to prepare the Income and Expenditure Account for the year ending 31/03/2012 and Balance Sheet as at that date.

Receipts and Payments Account for the year ending 31.03.2012
Dr.	Cr.
Receipts		Amount Rs	Payments	Amount Rs
To Balance b/d		11,960	By Printing and Stationery	6,950
(Cash at Bank)			By Repairs	2,100
To Subscriptions		36,500	By Rent	8,500
(including Rs 2,500 for 2010-2011)			By Books	20,000
To Sale of Furniture		12,000	By Travelling Expenses	2,000
(Book Value Rs 18,000)			By Investments	40,000
To Donations		27,000	By Insurance	1,700
To Admission Fees		5,050	By Balance c/d	11,260
(Revenue)			(Cash at Bank)
		92,510		92,510

Additional Information:
1)

Particulars	01-04-2011	31-03-2012
Outstanding Subscriptions	3,000	5,000
Furniture	32,000	?
Building Fund	1,45,000	?
Capital Fund	1,51,960	?
Investments	2,50,000	?

2) Neglect depreciation on the part of furniture sold during the year. But depreciate the remaining furniture by Rs 1,400.

3) Donation is received for Building Fund.

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Balance Sheet as on 01/04/2012
Liabilities	Amount Rs	Amount Rs	Assets	Amount Rs	Amount Rs
Subscription received in			Outstanding subscriptions
Advance for 2012-2013		15,000	2010-2011	20,000
			2011-2012	30,000
					50,000

Income and Expenditure Account for the year ending March 31,2013
Dr.				Cr.
Expenditure	Amount (Rs)	Income		Amount (Rs)
		Subscription	3,30,000
		Add: Outstanding at the end	22,000
		Add: Advance in the beginning	15,000	3,67,000

Balance Sheet as on March 31,2013
Liabilities	Amount (Rs)	Assets	Amount (Rs)
		Outstanding Subscription
Subscription Received in Advance at the end	15,000	(Outstanding for 2010-11 is Rs 4,000 + outstanding for 2011-12 + Rs 5,000 and Outstanding for2 012-13 is Rs 22,000)	31,000