Practical Problem 03
Practical Problems | Q 3 | Page 115
Receipts and Payments Account for the year ending 31.03.2018. | |||||
Receipts | ₹ | ₹ | Payments | ₹ | ₹ |
To Subscriptions | |||||
2016 – 17 | 2,000 | ||||
2017 – 18 | 60,000 | ||||
2018 – 19 | 4,500 | 66,500 | |||
Adjustments:
Subscription Outstanding for the year 2017 – 18 is ₹ 6,000.
During previous year Subscription received in advance for 2017 – 18 is ₹ 2,000.
Outstanding subscription of 2016 – 2017 is ₹ 2,500
With the help of the above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.
SOLUTION:
In the books of _____________________
Income and Expenditure Account for the year ended 31st March, 2018 | |||||
Expenditure | (₹) | (₹) | Income | (₹) | (₹) |
By Subscription (Year 2017–18) | 60,000 | ||||
Add: Outstanding Subscription of Current Year 2017–18 | 6,000 | ||||
Add: Subscription received in Advance of Current Year in Previous Year | 2,000 | 68,000 | |||
Balance Sheet as on 31st March, 2018 | |||||
Liabilities | (₹) | (₹) | Assets | (₹) | (₹) |
Subscription received in Advance in the Current Year for the Year 2018 – 19 | 4,500 | Outstanding Subscription for Current Year (2017–18) | 6,000 | ||
Outstanding Subscription for the Year 2016 – 17 (2,500 – 2,000) | 500 | ||||