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M.396 An Aid to Accountancy—CBSE XII

Working Notes:
1. Dr. SUBSCRIPTION ACCOUNT Cr.
Particulars ` Particulars `

To Subscription Due A/c 38,000 By Advance Subscription A/c 11,200
(in the beginning) (in the beginning)
To Income and Expenditure A/c (Bal. Fig.) 5,76,000 By Bank A/c 5,95,600
To Advance Subscription A/c (at the end) 20,800 By Subscription Due A/c (at the end) 28,000
6,34,800 6,34,800

2. Dr. SALARIES ACCOUNT Cr.
Particulars ` Particulars `
To Prepaid Salaries A/c 20,000 By Outstanding Salaries A/c 60,000
(in the beginning) (in the beginning)
To Bank A/c (Paid during the year) 2,16,000 By Income and Expenditure A/c 2,00,000
To Outstanding Salaries A/c (at the end) 36,000 (Balancing Figure)
By Prepaid Salaries A/c (at the end) 12,000
2,72,000 2,72,000
Alternatively:
CALCULATION OF SALARIES FOR THE CURRENT YEAR
Particulars `
Salaries Paid during the year 2,16,000
Add: Outstanding Salaries (31st March, 2018) 36,000
Prepaid Salaries (1st April, 2017) 20,000 56,000
2,72,000
Less: Outstanding Salaries (1st April, 2017) 60,000
Prepaid Salaries (31st March, 2018) 12,000 72,000
Current Year’s Salaries to be shown in the Income and Expenditure Account 2,00,000

3. Dr. CREDITORS FOR SPORTS MATERIALS ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d (Advance) 20,000 By Balance b/d 60,000
To Bank A/c 2,16,000 By Stock of Sports Materials A/c (Bal. Fig.) 2,00,000
To Balance c/d 36,000 (Credit Purchases)
By Balance c/d (Advance) 12,000
2,72,000 2,72,000

4. Dr. STOCK OF SPORTS MATERIALS ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 60,000 By Income and Expenditure A/c (Bal. Fig.) 2,52,000
To Creditors for Sports Materials A/c (Transfer) 2,00,000 (Sports Materials Consumed)
To Bank A/c (10% of ` 2,00,000) 20,000 By Balance c/d 28,000
(Cash Purchases: 10% of credit Purchases)
2,80,000 2,80,000