Question 20 Chapter 1 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 20 Chapter 1 of +2-A

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)

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

2 Book 1 min - Question 20 Chapter 1 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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