Please explain both questions:
Q.6. From the following extracts of the receipts and payments account and the additional information, you are required to compute the income from subscription for the year ending on December 31,2002 and show the subscription items in the expenditure account and the balance sheet as on 31.12.2002.
Information
Subscription outstanding as on 31.12.2001 Rs 9,200, subscription received in advance as on 31.12.2001,
Rs 2,800 (including Rs 800 for 2002). There are 1,440 members each paying an annual subscription of Rs 100.
Q.7. How will you deal with the following items while preparing the income and expenditure account for the year ending on 31st December, 2003 and the balance sheet as on that date ?
Subscription outstanding as on 31.12.2002; Rs 9,500 (including Rs 500 for 2001), subscription received in advance as on 31.12.2002, Rs 3,000 (including Rs 200 for 2004).
Subscription received during 2003 : for 2001 Rs 400, for 2002 Rs 8,9000, for 2003 Rs 1,34,400, for 2004
Rs 4,000, for 2005 Rs 1,200.
Dear Student
For Q.6 –
Subscription income to be booked in income and expenditure account is that income which belongs to current year only and which does not have any element of Previous years or Next years
Subscription income to be booked in Income and Expenditure A/c = NO. of Members x Annual Subscription Fees of current year = 1,440 x 100 = 1,44,000
In Balance Sheet , we will have to State all outstanding subscriptions and Prepaid or Advance subscriptions
From Question ,
For Q.7
Dear Student
Subscription income to be booked in income and expenditure account is that income which belongs to current year only and which does not have any element of Previous years or Next years , However in balance sheet all subscriptions outstanding and Prepaid are to be shown in Asset and Liability side respectively :
In question we are given information subscription received relating to different years :
Following is the treatment for the indormation in question
Please note that in Q.7 there is so much information missing , because of that Outstanding subscriptions of 2003 cant be calculated
Regards
For Q.6 –
Subscription income to be booked in income and expenditure account is that income which belongs to current year only and which does not have any element of Previous years or Next years
Subscription income to be booked in Income and Expenditure A/c = NO. of Members x Annual Subscription Fees of current year = 1,440 x 100 = 1,44,000
In Balance Sheet , we will have to State all outstanding subscriptions and Prepaid or Advance subscriptions
From Question ,
| Subscription outstanding on 31.12.2001 | 9,200 |
| Less : Subscriptions of 2001 received in 2002 (From Receipt and Payment A/c) | 9,000 |
| Subscription outstanding on 31.03.2002 of Previous years | 200 |
| Subscriptions received in Advance as on 31.12.2001 | 2,800 |
| Less : Advance belonging to current year ( for year 2002) | 800 |
| Add : Received advance in current year for next year (2003) | 5,200 |
| Total Advance Subscriptions to be shown in Balancesheet | 7,200 |
| Total Subscriptions for current year as per income and expenditure a/c | 1,44,000 |
| Less : Receipts for current year (2002) | 1,34,400 |
| Less : Received in advance for 2002 in Previous year (2001) | 800 |
| Outstanding subscriptions of Current Year | 8,800 |
| Add : Outstanding subscriptions of Previous Year | 200 |
| Total Outstanding Subscriptions to be shown in Balance sheet | 9,000 |
For Q.7
Dear Student
Subscription income to be booked in income and expenditure account is that income which belongs to current year only and which does not have any element of Previous years or Next years , However in balance sheet all subscriptions outstanding and Prepaid are to be shown in Asset and Liability side respectively :
In question we are given information subscription received relating to different years :
Following is the treatment for the indormation in question
| Subscription outstanding on 31.12.2002 (including 500 for 2001) | 9,500 |
| Less : Subscription received during 2003 , for 2001 | 400 |
| Less : Subscription received during 2003 , for 2002 | 8,900 |
| Subscription outstanding on 31.03.2003 of Previous years | 200 |
| Advance Subscription on 31.12.2002 (including 200 for 2004 , (Assumed that remaining is for 2003 only)) | 3,000 |
| Less : Subscription received during 2002 , for 2003 | 2,800 |
| Add: Subscription received during 2003 , for 2004 | 4,000 |
| Add: Subscription received during 2003 , for 2005 | 1,200 |
| Total Advance Subscription to be shown in balancesheet as Advance subscription | 5,400 |
| Subscription Received for current Year in Current Year (2003) | 1,34,400 |
| Add: Subscription received in previous years (2002) for current Year (2003) | 2800 |
| Total Subscriptions for the year 2003 to be shown in income and expenditure A/c | 1,37,200 |
Please note that in Q.7 there is so much information missing , because of that Outstanding subscriptions of 2003 cant be calculated
Regards