Question 12 Chapter 1 of +2- Part-1 – USHA Publication 12 Class Part – 1

Question 12 Chapter 1 of +2-Part-1

12. Extracts of Receipts and Payments account for the year ended 31-3-2015 are given below:

 Receipts Amount Payments Amount To Subscription A/c: 31-3-2014 25,000 31-03-15 90,000 31-03-16 10,000
 Rs. (a) Subscription outstanding on 31.3.2014 2,500 (b) Total Subscriptions outstanding as on 31.3.2015 6,000 (c) Subscription received in advance as on 31.3.2014 1,400

Calculate the amount of subscription to be shown on the income side Income and Expenditure account and show the relevant data in the balance sheet on 31.3.2015.

The solution of Question 12 Chapter 1 of +2 Part-1: –

 Calculation of Amount of Subscription: Particular Amount Subscription received for the year 2014-15 48,000 Add: – Subscription outstanding for 2014-15 5,000 Subscriptions of 2014-15, received in 2013-14 1,400 The amount for subscription credited to the Income and Expenditure A/c 54,400

 Balance Sheet As on 1-4-2015 Liabilities Amount Assets Amount Subscription received in advance for 2015-16 1,250 Outstanding Subscription: For 2013-14 (2,500-1,500) 1,000 -For 2014-15 (WN1)(500*200-90,000) 5,000 6,000

Working Note: –

 Calculation of Amount of Subscription: Particular Amount 1. Total subscription outstanding as on 31.3.2015 6,000 It includes Rs. 1,000 (i.e. Rs.2500-Rs. 1500) for the subscription still outstanding for 2013-14) (1,000) Hence, the subscription outstanding to 2014-15 is Rs. (6,000-1,000) 5,000