(Presentation of subscription only) With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on that date.

2. (Presentation of subscription only) With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on that date.

Subscription meaning: Subscription is a revenue of income Collected by the member of Not for Profit concern. Subscription may be given periodically Quarterly, Yearly, monthly. All member have to pay subscription regularly. It is credited to Income and Expenditure Account.

It can be Classified into:

Subscription received in advance and Outstanding Subscription 

 Balance Sheet as on 01.04.2018

Liabilities	Amount	Amount	Assets	Amount	Amount
Subscription received in advance for 2018-19		20,000	Outstanding subscription  2016-17  2017-18	26,000  35,000	61,000

Receipts and Payments Account for the year ending 31.03.2019.

Dr.

Cr.

Receipts	Amount	Amount	Payments	Amount	Amount
To Subscriptions
2016-17	23,000
2017-18	30,000
2018-19	4,10,000
2019-20	21,000	4,84,000

Adjustments:

Outstanding Subscription for 2018-19 is ₹32,000.

With the above information present the item Subscription in Income and Expenditure Account for the year ended 31.03.2019 Balance Sheet as on that date.

Solution:

Income and Expenditure account for the year ended 31.03.2019

Expenditure	Amount	Amount	Income	Amount	Amount
			By Subscription	4,10,000
			(+) Outstanding sub.	32,000
			(+) Prepaid Sub.	20,000	4,62,000

Balance Sheet as on 31. 03. 2019

Liabilities	Amount	Amount	Assets	Amount	Amount
Prepaid Subscription (2019-20)		21,000	Outstanding Subscription 2016-17 2017-18 2018-19	3,000 5,000 32,000	40,000

Calculation and Explanation:

Subscription Outstanding for the current year are to be added and the Outstanding Subscription for the last year are deducted because Outstanding for current year means money has not received and Outstanding for last year means money has been received and already recorded in the Balance sheet of the last year.

Prepaid or Advance Subscription received for the current year are to be added because the subscription has received for the current year.

Prepaid or Advance Subscription received for the Next year are to be deducted because the subscription has received for the Next year it will be recorded in next year only.

In the assets side Outstanding Subscription has given 26,000 & 35,000. against that as shown in receipts side 23,000 & 30,000. That means 3,000 & 5,000 are still not received yet. Hence show in Balance Sheet of the current year.