Question 14 Chapter 1 of +2 Part-1 - USHA Publication 12 Class Part

The solution of Question 14 Chapter 1 of +2 Part-1: –

Question 14 Chapter 1 of +2-Part-1

Table of Contents

14. A club has 300 members. Each member pays Rs.100 annual subscription. Subscription Rs.2,800 is outstanding on 31-3-2010.

You are required to show the above items in the Income and Expenditure account for the year ended31-3-10 and in the Balance Sheet as of that date.

Income and Expenditure Account for the year ending 31-3-2010

Liabilities

Amount

Assets

Amount

By Subscription (300 x 100)

Balance Sheet As on 31-3-2010
Liabilities	Amount	Assets		Amount
Subscription received in advance	2,500	Outstanding Subscription:
		31-03-09	800
		31-03-10(WN1)	2,000	2,800

Rs.700 subscription is received for 31.3.09 in the current year 31.3.10. It means Rs.700 was outstanding in the previous year.
Subscription received in the current year (31-3-10)	= 28,000
Therefore, outstanding should be Rs(30,000-28,000)	= 2,000

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Also, Check out the solved question of previous Chapters: –

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
Chapter No. 4 – Ratio Analysis
Chapter No. 5 – Cash Flow Statement