Question

Receipt and Payment Account of Maitrey Sports Club showed that Rs 68,500 were received by way of subscriptions for the year ended on March 31, 2017.

The additional information was as under:

1. Subscription Outstanding as on March 31, 2016 were Rs 6,500,

2. Subscription received in advance as on March 31, 2016 were Rs 4,100,

3. Subscription Outstanding as on March 31, 2017 were Rs 5,400,

4. Subscription received in advance as on March 31, 2017 were Rs 2,500.

Show how that above information would appear in the final accounts for the year ended on March 31, 2017 of Maitrey Sports Club.

Answer 1

Books of Maitrey Sports Club Income and Expenditure Account as on March 31, 2017
Dr.						Cr.
Expenditure		Amount Rs	Income		Amount Rs
			Subscription	68,500
			Less: O/s on Mar. 31, 2016	(6,500)
			62,000
			Add: Advance on Mar. 31, 2016	4,100
			Add: O/s on Mar. 31, 2017	5,400
			71,500
			Less: Advance on Mar. 31, 2017	(2,500)	69,000

Balance Sheet as on March 31, 2016
Liabilities	Amount Rs	Assets	Amount Rs
Subscription in Advance	4,100	Subscription Outstanding	6,500

Balance Sheet as on March 31, 2017
Liabilities	Amount Rs	Assets	Amount Rs
Subscription in Advance	2,500	Subscription Outstanding	5,400