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Chapter 1 Financial Statements of Not-for-Profit Organisations 1.5
.
Illustration 5.
Subscription received during the year 2018–19 ` 50,000
Subscription outstanding at the closing of 2018–19 ` 8,000
Subscription outstanding at the beginning of 2018–19 ` 6,000
Calculate the amount of subscription to be credited to Income and Expenditure Account for
the year 2018–19. (CBSE 2006, Modified)
Solution:
Calculation of subscription to be credited to Income and Expenditure Account:

Particulars `
Subscription received during the year 50,000
Add: Outstanding at the end of 2018–19 8,000
58,000
Less: Outstanding at the beginning of 2018–19 6,000
Amount to be credited to Income and Expenditure A/c 52,000
Illustration 6.

From the following extracts of the Receipts and Payments Account and the additional
information, you are required to compute the income from subscription for the year ended 31st
March, 2019 and show the subscription item in the Final Accounts of the club:

RECEIPTS AND PAYMENTS ACCOUNT
Dr. for the year ended 31st March, 2019 Cr.
Receipts ` Payments `
To Subscriptions 10,000
Additional Information: `
(i) Subscription outstanding on 31st March, 2018 2,000
(ii) Subscription outstanding on 31st March, 2019 4,000
(iii) Subscription received in advance on 31st March, 2018 3,000
(iv) Subscription received in advance on 31st March, 2019 2,000
(CBSE 2007, Modified)
Solution:
Dr. INCOME AND EXPENDITURE ACCOUNT for the year ended 31st March, 2019 Cr.
Expenditure ` Income `
By Subscription 10,000
Add: Outstanding (31st March, 2019) 4,000
14,000
Less: Outstanding (31st March, 2018) 2,000
12,000
Less: Advance (31st March, 2019) 2,000
10,000
Add: Advance (31st March, 2018) 3,000 13,000
BALANCE SHEET as at 31st March, 2019
Liabilities ` Assets `
Advance Subscription 2,000 Subscription Outstanding 4,000