Question 20 Chapter 1 of +2-A
20. From the following information prepare Subscription Account for the year ending 31st March 2019
| Particulars | 31st March 2018 | 31st March 2019 |
| Rs. | Rs. | |
| Subscription in Arrears | 20,000 | 18,000 |
| Subscription in Advance | 13,000 | 11,000 |
In the year ending 31st March 2019 subscription received were Rs. 2,10,000 (Including Rs 6,000 of arrears from the previous year) and subscription arrears of previous year were written off Rs. 4,000.
| Income and Expenditure Account |
|||||
| Date | Particular | Amount | Date | Particular | Amount |
|---|---|---|---|---|---|
| 01/04/2018 | To Subscriptions in arrears Opening | 20,000 | 01/04/2018 | By Subscriptions in advance Opening | 13,000 |
| 31/03/2019 | To Subscriptions in advance Closing | 11,000 | 31/03/2019 | By Subscriptions written off last year | 4,000 |
| 31/03/2019 | By Subscriptions Received | 2,10,000 |
|||
| 31/03/2019 | By Subscriptions in arrear closing For 2018 14,000 (20,000-6000) For 2019 18,000 |
32,000 |
|||
| 31/03/2019 | To Income & Expenditure A/c (B. fig) | 2,28,000 | |||
| 2,59,000 | 2,59,000 |
||||
Note: Subscription in arrear for the previous year is received to the extent of 6,000, so we have to find out the number of subscriptions outstanding for the year ending 31/03/2018
Total outstanding amount – The received amount
20,000- 6,000
= 14,000/- (Till outstanding for the year ending 31/03/2018)
There is a difference of Rs. 14,000 in the answer to this question because they treated the whole amount of opening subscription in arrear Rs. 20,000 as received during the year but according to the question only Rs. 6,000 was received during the current year(as on 31/03/2019)
Calculation of Amount of Subscriptions
| Subscription received During the year | 2,10,000 |
| Add: - Subscription outstanding on 31/03/19 (37,500-12,500) | 18,000 |
| Subscription received in advance on 31st March 2018 for the year ended on 31st March 2019 | 13,000 |
| The subscription was written off Rs 4000. received this year so make it income | 4,000 |
| Subscription received in advance for the year ended 31/03/20 | 2,45,000 |
| Less: - Subscription in arrear as on 1/4/18 received during the year | 6,000 |
| Subscription received in advance for the year ended 31/03/20 and 31/03/21 | 11,000 |
| The amount for subscription credited to the Income and Expenditure A/c | 2,28,000 |
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Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
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