In the year ended 31st March, 2019 subscriptions received were Rs. 21,00,000. These subscriptions include Rs. 30,000 for the year ended 31st March , 2018 and Rs. 40,000 for the year endeing 31st March, 2020. On 31st March , 2019 subscriptions due but not received were Rs. 50,000. Corresponding amount on 1st April 2018 was Rs. 60,000. Determine the amount that should be credited to Income and Expenditure Account as subscriptions for the year ended 31st March 2019.

Answer

N/a

Explanation

Explanation : Subscriptions due but not received as at 31st March , 2019 amounted to Rs. 50,000 . It therefore , includes subscriptions due but not received for the ended 31st March 2018 amounted to Rs. 30,000 [i.e., Rs. 60,000 (Due) -Rs. 30,000 (received during the year ended 31st March 2019)]. The subscriptions due for the year ended 31st March , 2019 amounted to only Rs. 20,000(i.e., Rs.50,000 -Rs. 30,00).
In case the questions had stated- subscriptions due but not received for the year ended 31st March 2019 are Rs. 50,000' . This would have meant that subscriptions amounted to Rs. 50,000 are due only for the year ended 31st March , 2019 . In the Income and Expenditure Account the subscriptions due would have been taken as Rs. 50,000 and not as Rs. 20,000.