During the year 2015 subscription received by a sports club 80000 thes...
Calculation of Subscription Income:
- Total subscription received in 2015: Rs. 80,000
- Subscription received for 2014: Rs. 3,000
- Subscription received for 2016: Rs. 6,000
- Subscription due but not received as of March 31, 2016: Rs. 12,000
Step 1: Adjust for subscriptions received in advance:
Subscriptions received for 2014 and 2016 need to be adjusted as they do not pertain to the year 2015.
Adjusted subscription income for 2015:
Rs. 80,000 - Rs. 3,000 (2014) - Rs. 6,000 (2016) = Rs. 71,000
Step 2: Account for subscriptions due but not received:
The amount of subscription due but not received as of March 31, 2016, needs to be added to the subscription income.
Adjusted subscription income for 2015 including subscriptions due but not received:
Rs. 71,000 + Rs. 12,000 = Rs. 83,000
Therefore, the amount of subscription to be shown in the income and expenditure account as income from subscription for the year 2015 is Rs. 83,000. This amount reflects the actual subscription income earned during the year after adjusting for subscriptions received in advance and those due but not received.
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