Janta Kalayan Club has 1250 members each paying an annual subscription of < 150. During the year ended 31st March 2018, the club did not receive subscriptions from 45 members and received subscriptions in advance from 46 members for the year ending 31st March 2019. On 31st March 2017, the outstanding subscriptions were < 15,000 and subscriptions received in advance were < 3000. Calculate the amount of subscription that will be debited to the ‘Receipts and Payments Account’ for the year ended 31st March 2018.
Solution
Amount debited to receipt and payt account
Amount debited to receipt and payt account
For 2018 = Number of members paid subscription is 1205.
each pay rs 150. Total subscription received for 2018 is = 1205 × 150
180750
Subscription received in advance of 2019 = 46 × 150
6900
Subscription received in 2018 (total) = 180750 + 6900
187650
Receipt and payment A/c
each pay rs 150. Total subscription received for 2018 is = 1205 × 150
180750
Subscription received in advance of 2019 = 46 × 150
6900
Subscription received in 2018 (total) = 180750 + 6900
187650
Receipt and payment A/c
For the year ended 31st March, 2018
Dr. Cr.
Note: As receipt and payment account is maintained on cash system accounting. As outstanding amount on 31st March 2017 is still not received in 2018 therefore it is not recorded in receipt and payment account.similarly, subscription received in advance on 31st March,2017 is recorded in receipt and payment account of the year ended 31st march, 2017.
| Particular | Amount | Particular | Amount |
| To subscription | |||
| 2018 180750 | |||
| 2019. 6900 | 187650 | ||