Page 255 - ISCDEBK-XI

Non-Trading Organisation 23.3

Solved Questions

Illustration 1 (Preparation of Subscription Account).
(a) The final accounts of a sports club are prepared annually on financial year basis. On
31st March, 2019, subscriptions in arrear amounted to ` 8,700 and subscriptions received in
advance for the year 2019–20 amounted to ` 7,100. During the year, ` 1,21,400 were received
in respect of subscriptions including ` 7,500 arrears for the year ended 31st March, 2019 and
` 10,800 in advance for the year ended 31st March, 2021. On 31st March, 2020, subscriptions
in arrears amounted to ` 5,300. Calculate the amount of subscriptions to be credited to
Income & Expenditure Account by preparing Subscription Account for the year ended
31st March, 2020.
(b) Prepare the Subscription Account if the Outstanding Subscription for 2019–20 amounted to
` 5,300, other things remaining the same. Also prepare Subscription Outstanding Account
and Subscription Received in Advance Account in this case.
Solution:
(a) Dr. SUBSCRIPTIONS ACCOUNT Cr.
Date Particulars ` Date Particulars `
2019 2019
April 1 To Subscriptions Outstanding A/c 8,700 April 1 By Subscriptions Received in
(in the beginning) Advance A/c 7,100
(in the beginning)
2020 2020
March 31 To Income & Expenditure A/c 1,14,300 March 31 By Bank A/c 1,21,400
(Balancing Figure) March 31 By Subscriptions Outstanding A/c:
March 31 To Subscription Received in (at the end)
Advance A/c 10,800 for 2018–19
(at the end) (` 8,700 – ` 7,500) 1,200
for 2019–20
(` 5,300 – ` 1,200) 4,100 5,300
1,33,800 1,33,800
(b) Dr. SUBSCRIPTIONS ACCOUNT Cr.

Date Particulars ` Date Particulars `
2019 2019
April 1 To Subscriptions Outstanding A/c 8,700 April 1 By Subscriptions Received in
(in the beginning) Advance A/c 7,100
(in the beginning)
2020 2020
March 31 To Income & Expenditure A/c 1,15,500 March 31 By Bank A/c 1,21,400
(Balancing Figure) March 31 By Subscriptions Outstanding A/c:
March 31 To Subscription Received in 10,800 (at the end)
Advance A/c for 2018–19 1,200
(at the end) for 2019–20 5,300 6,500
1,35,000 1,35,000