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

Question 20 Chapter 1 of +2-A

Table of Contents

The solution of Question 20 Chapter 1 of +2-A: –

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

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)

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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