With the help of above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

3. With the help of above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

Dr. Receipts and Payments Account for the year ended 31.03.2018.   Cr. 

Receipts	Amount	Amount	Payments	Amount	Amount
To Subscriptions
2016-17	2,000
2017-18	60,000
2018-19	4,500	66,500

Adjustments:

Subscription Outstanding for the year 2017-18 is ₹6,000.

During previous year Subscription received in advance for 2017-189 is ₹2,000.

Outstating subscription of 2016-17 is 42,500.

With the help of above information present the item Subscription in Income and Expenditure Account for the year ending 31.03.2018 and Balance Sheet as on that date.

Solution:

Income and Expenditure Account for the year ended 31st March 2018

Expenditure	Amount	Amount	Income	Amount	Amount
			By Subscription	60,000
			(+) Outstanding Subscription 2017-18	6,000
			(+) Prepaid Subscription 2017-18	2,000	68,000

Balance Sheet as on 31st March 2018

Liability	Amount	Amount	Assets	Amount	Amount
Prepaid Subscription 2018-19		4,500	Outstanding Subscription (2,500-2,000) 2016-17		500