question_answer

Extracts of receipts and payments account for 31st March, 2018 are given below:

Particulars	Amt (Rs.)
Subscriptions
2016-17	1,000
2017-18	28,000
2018-19	500

Additional Information Total number of members 1,000. Annual membership fee 30. Subscription outstanding on 31st March, 2017 Rs. 1,300 Show how it will be shown in income and expenditure account of current year and balance sheet for 31st March, 2017 and 31st March, 2018.

Answer:

                                                Income and Expenditure Account Dr                                             for the year ending 31st March, 2018

Expenditure	Amt (Rs.)	Income		Amt (Rs.)
		Subscription	28,000
		(+) Outstanding for Current Year	2,000	30,000

Note: Subscription for the year should be \[1,000\times 30=30,000,\]but as per receipts and payments account, received for the current year Rs. 28,000 only, so Rs. 2,000 is outstanding. Balance Sheet as at 31st March, 2018

Liabilities	Amt (Rs.)	Assets	Amt (Rs.)
		Subscription Due	1,300

Balance Sheet as at 31st March, 2018

Liabilities	Amt (Rs.)	Assets		Amt (Rs.)
Subscription Received in Advance	500	Outstanding Subscription
		2017 (1,300 ? 1,000)	300
		2018	2,000	2,300