Receipts and Payments Account of Friends Club showed that ₹ 6,85,000 were received by way of subscriptions for the year ended on 31st March, 2018.
The additional information was as under :
(a) Subscription outstanding as on 31st March, 2017 were ₹ 65,000 .
(b) Subscription received in advance as on 31st March , 2017 were ₹ 41,000.
(c) Subscription outstanding as on 31st March, 2018 were ₹ 54,000 .
(d) Subscription received in advance as on 31st March , 2018 were ₹ 25,000.
Show how the above information would appear in the final accounts for the year ended on 31st March, 2018 of Friends Club.

Open in App

Solution

Income and Expenditure Account

for the year ending March 31, 2018

Dr.

Cr.

Expenditure

Amount

(₹)

Income

Amount (₹)

Subscriptions
6,90,000

Balance Sheet

as on March 31, 2018

Liabilities

Amount

(₹)

Assets

Amount (₹)

Subscriptions Received in Advance
25,000
Subscriptions Outstanding
54,000

Balance Sheet

as on March 31, 2017

Liabilities

Amount

(₹)

Assets

Amount (₹)

Subscriptions Received in Advance
41,000
Subscriptions Outstanding
65,000

Working Notes:

WN1: Calculation of Subscription Income

Particulars

Amount

(₹)

Subscription received during 2017-18
6,85,000

Subscription outstanding in 2017-18
54,000

Subscription received in advance in 2016-17
41,000

Subscription outstanding in 2016-17
(65,000)

Subscription received in advance in 2017-18
(25,000)

Credited to Income and Expenditure Account 6,90,000

Suggest Corrections

Similar questions

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.

	₹
Subscriptions Outstanding on 31st March, 2018	30,000
Subscriptions Received in Advance on 31st March, 2019	40,000
Subscriptions Received in Advance on 31st March, 2018	14,000

	₹
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

Join BYJU'S Learning Program

Income and Expenditure Account for the year ending March 31, 2018
Dr.				Cr.
Expenditure	Amount (₹)	Income	Amount (₹)
		Subscriptions	6,90,000

Balance Sheet as on March 31, 2018
Liabilities	Amount (₹)	Assets	Amount (₹)
Subscriptions Received in Advance	25,000	Subscriptions Outstanding	54,000

Balance Sheet as on March 31, 2017
Liabilities	Amount (₹)	Assets	Amount (₹)
Subscriptions Received in Advance	41,000	Subscriptions Outstanding	65,000

Particulars	Amount (₹)
Subscription received during 2017-18	6,85,000
Subscription outstanding in 2017-18	54,000
Subscription received in advance in 2016-17	41,000
Subscription outstanding in 2016-17	(65,000)
Subscription received in advance in 2017-18	(25,000)
Credited to Income and Expenditure Account	6,90,000