Practical Problem 02
Practical Problems | Q 2 | Page 115
Balance Sheet as on 01.04.2018 | |||||
Liabilities | Amt. ₹ | Amt. ₹ | Assets | Amt. ₹ | Amt.₹ |
Subscription received in Advance for 2018 – 19 | 20,000 | Outstanding Subscription | |||
2016 – 17 | 26,000 | ||||
2017 – 18 | 35,000 | 61,000 | |||
Receipts and Payments Account for the year ending 31.03.2019.
Liabilities | Amt. ₹ | Amt. ₹ | Assets | Amt. ₹ | Amt.₹ |
Subscription received in Advance for 2018 – 19 | 20,000 | Outstanding Subscription | |||
2016 – 17 | 26,000 | ||||
2017 – 18 | 35,000 | 61,000 |
Adjustments:
Outstanding Subscription for 2018 – 19 is ₹ 32,000
With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on the date.
SOLUTION:
In the books of ________________
Income and Expenditure Account for the year ended 31st March 2019 | |||||
Expenditure | (₹) | (₹) | Income | (₹) | (₹) |
By Subscription | 4,10,000 | ||||
Add: Outstanding Subscription for Current Year 2018–19 | 32,000 | ||||
4,42,000 | |||||
Add: Subscription of Current Year received in Advance in the Previous Year 2017–18 | 20,000 | 4,62,000 | |||
Balance Sheet as on 31st March 2019 | |||||
Liabilities | (₹) | (₹) | Assets | (₹) | (₹) |
Subscription received in Advance for the Year 2019 – 20 | 21,000 | Outstanding Subscription | |||
Add: Year 2018–19 (Current year) | 32,000 | ||||
Add : Year 2016–17 (26,000 – 23,000) | 3,000 | ||||
Add : Year 2017–18 (35,000 – 30,000) | 5,000 | 40,000 | |||
Working Note:
Outstanding subs. given in the balance sheet as on 01 – 04 – 2018 are ₹ 26,000 (for 2016–17) and ₹ 35,000 (for 2017 – 18). Against that as shown in receipt – Payment A/c ₹ 23,000 and ₹ 30,000 are received respectively. Means ₹ 3,000 and ₹ 5,000 are still outstanding which are known in the current year balance sheet.