Page 438 - AAAXII

Model Test Papers M.419

7.
Dr. SUBSCRIPTION ACCOUNT Cr.
Particulars ` Particulars `

To Outstanding Subscription A/c (31.3.2017) 52,000 By Advance Subscription A/c (31.3.2017) 30,000
To Income and Expenditure A/c (150 × ` 1,000) 1,50,000 By Bank A/c 1,60,000
To Advance Subscription A/c (31.3.2018) 20,000 By Outstanding Subscription A/c 32,000
(31.3.2018: Balancing Figure)
2,22,000 2,22,000
Outstanding Subscription for the year 2017–18 = ` 32,000 – ` 24,000 = ` 8,000.

Alternative Method: Outstanding Subscription for the year ended 31st March, 2018 can
be calculated by preparing the following statement:

Particulars `
Subscription due for 2017–18 (150 × ` 1,000) 1,50,000
Less: Subscription Received for 2017–18 [` 1,60,000 – ` 20,000 (Advance) – ` 28,000* (2017)] 1,12,000
38,000
Less: Subscription received in advance as at 31.3.2017 30,000
Outstanding Subscription for 2017–18 8,000
*` 52,000 (Subscription Outstanding as on 31.3.2017) – ` 24,000 (Still in Arrears) = ` 28,000.

8. ADJUSTMENT ENTRY

Date Particulars L.F. Dr. (`) Cr. (`)
Priyanka’s Capital A/c ...Dr. 15,000
To Mona’s Capital A/c 7,500
To Nisha’s Capital A/c 7,500
(Being the adjustment for profit divided in wrong ratio)

Working Note:
Profit for last three years = ` 15,000 + ` 25,000 + ` 50,000 = ` 90,000.
Priyanka has taken ` 45,000 whereas, she was entitled to ` 30,000 as agreed.

ADJUSTMENT TABLE
Particulars Mona Nisha Priyanka
` ` `
Profit already Distributed (` 90,000 in 1 : 1 : 2) (Dr.) 22,500 22,500 45,000
Profit ought to have been Distributed (` 90,000 in 1 : 1 : 1) (Cr.) 30,000 30,000 30,000
7,500 7,500 15,000
Net Effect
(Cr.) (Cr.) (Dr.)
Short Short Excess