Practical Problem 02
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.