question_answer

From the following information, you are required to compute the receipt from subscription for the year ending 31st March, 2018.

(i)	Income from subscription shown in income and expenditure account = Rs. 78,000
(ii)	Subscription received in advance as on 31st March, 2018 = Rs. 12,000
(iii)	Subscription received in advance as on 31st March, 2017 = Rs. 18,000
(iv)	Subscription outstanding as on 31st March, 2018 = Rs. 24,000
(v)	Subscription outstanding as on 31st March, 2017 = Rs. 12,000

Answer:

                                                Calculation of Receipt from Subscription

Particulars		Amt (Rs.)
Amount of Subscription as per Income and Expeadehere A/c		78,000
(+) Outstanding Subscription of Previous Year	12,000
Subscription Received in Advance for Next Year	12,000	24,000
		1,02,000
(-) Outstanding Subscription of Current Year	(24,000)
Subscription Received in Advance in Previous Year	(18,000)	(42,000)
Amount Received as Subscription in Current Year		60,000