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.
The solution of Question 20 Chapter 1 of +2-A: –
| 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 |
Not-for-Profit Organisations – Meaning and Overview
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Also, Check out the solved question of previous Chapters: –
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
