In 2014 the subscriptions received where rupees 50000 These subscriptions include rupees 300 for 2013 and rupees 400 for 2015 on 31st December 2014 subscription due but not received were rupees 500 The corresponding figure on 1st January 2014 was rupees 600 what amount should be credited to the income and expenditure account as subscription for the year 2014
Hridya,
Let me present the question in a different manner for better clarity.
Additional Information:
(a) Subscription outstanding as on January 01, 2014 Rs 600.
(b) Subscription outstanding as on December 31, 2014 Rs 500.
From the Receipts & Payments A/c, it is clear that Rs 49,300 has been received for the year 2014.
Now, consider the additional information. Out of Rs 600 (outstanding in the beginning), Rs 300 has been received for 2013 in 2014. This means, the amount outstanding at the end (Rs 500) includes Rs 300 on account of 2013. So, outstanding subscription for 2014 is Rs 200 only.
So, the amount of subscription for the year 2014 is Rs 49,500 (49,300 + 200).
Let me present the question in a different manner for better clarity.
| Receipts and Payments Account | ||||
| Receipts | Amount (Rs) |
Payments | Amount (Rs) | |
| Subscriptions | ||||
| 2013 | 300 | |||
| 2014 | 49,300 | |||
| 2015 | 400 | 50,000 | ||
(a) Subscription outstanding as on January 01, 2014 Rs 600.
(b) Subscription outstanding as on December 31, 2014 Rs 500.
From the Receipts & Payments A/c, it is clear that Rs 49,300 has been received for the year 2014.
Now, consider the additional information. Out of Rs 600 (outstanding in the beginning), Rs 300 has been received for 2013 in 2014. This means, the amount outstanding at the end (Rs 500) includes Rs 300 on account of 2013. So, outstanding subscription for 2014 is Rs 200 only.
So, the amount of subscription for the year 2014 is Rs 49,500 (49,300 + 200).