Page 86 - VIRANSH COACHING CLASSES

2 : For considering adjustments relating to subscription only
Receipts and Payments Account
for the year ended 31 March 2018
st
Dr. Cr.
Receipts Amount Amount Payments Amount Amount
` ` ` `
To Subscription

2016 - 17 1,500

2017 - 18 80,000
2018 - 19 3,500 85,000

Adjustments :
1) Subscription outstanding for current year was ` 7,000
2) Outstanding subscription for 2016 - 17 was ` 2,000 Subscription received in advance during
last year was ` 8,000.
With the help of above information show the effects in final account.

Solution :
Income & Expenditure Account
st
for the year ended 31 March 2018
Dr. Cr.
Expenditure Amount Amount Income Amount Amount
` ` ` `
By Subscription 80,000
Add : Subscription 8,000
received in advance in last
year
Add ; Outstanding 7,000
Subscription for current year 95,000

Balance Sheet
as on 31 March 2018
st
Liabilities Amount Amount Assets Amount Amount
` ` ` `
Subscritpion 3,500 Outstanding Subscription
received in 2016 - 17 500
advance (2018-19) 2017 - 18 7,000 7,500

3 : Calculation of Depreciation
st
st
On 1 April 2018 Furniture Account shows a balance of ` 1,00,000, On 1 July 2018,
Additional Furniture was purchased for ` 30,000.
Furniture is to be depreciated by 12 % p.a. show the presentation in Final Accounts.

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