Subscriptions received during the year ended March 31st, 2006 by King Club were as under:
2004−05 Rs 3,0002005−06 Rs 93,0002006−07 Rs 2,000 ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯Rs 98,000–––––––––––
The Club has 500 members each paying @ Rs 200 as annual subscription. Subscriptions outstanding as on March 31st, 2005 were Rs 8,000. Calculate the amount of subscriptions to be shown as income in the Income and Expenditure Account for the year ended March 31st, 2006 and show the relevant data in the Balance Sheet as on 31st March, 2005 and 2006.
BOOKS OF KING CLUB
INCOME AND EXPENDITURE ACCOUNT
Dr. for the year ending 31st March, 2006 Cr.
as on 31st March, 2005
as on 31st March, 2006
Working Note :
(1) Total members are 500, each paying an annual subscription of Rs. 200.
Hence, total subscription receivable during the year 2005-06
500×Rs200=Rs 1,00,000Less : Amount received during the year 2005-06=Rs. 93,000–––––––– Outstanding subscription for the year 2005-06=Rs. 7,000––––––
(2) The outstanding subscription for 2004-05 is Rs. 8,000 out of which Rs. 3,000 has been received. Hence, the balance of Rs. 5,000 (i.e., Rs. 8,000 - Rs. 3,000) is still in arrear for 2004 - 05. It will be shown in the Balance Sheet on 31st March, 2006 on Assets side.