Adjustments in Final Accounts (Non-trading concerns)
Subscription Account
Subscriptions are paid by members as charges for using the facilities of a club or society for a particular period of time. Usually it is on a yearly basis.
Receipt and Payment account records the actual subscription received. It may pertain to any year.
However, In order to post it to the Income and Expenditure Account adjustments have to be made to the subscription as only subscription pertaining to that particular year is recorded in I/E account.
How to calculate e.g. for Year 2009
|
Total subscription received |
1000 |
|
Less Subscription in arrears, at the starting of the year |
200 |
|
Add Subscription received in advance for 2009, in previous years. |
100 |
|
Add Subscription in arrears, at the end of 2009 |
300 |
|
Less Subscription received in advance (for next year), at the end of the year |
100 |
|
Subscription revenue for Year 2010 |
1100 |
You can also make a separate Subscription Account and then post the final subscription amount in the Income and Expenditure Account
|
Dr. |
Subscription Account |
Cr. |
|
|
|
Amount |
|
Amount |
|
Subscription in arrears (b/d) (not collected during the previous year) |
XXXX |
Subscription received in advance b/d (collected during previous year) |
XXXX |
|
Subscription received during current year (from Income & Expenditure Account) |
XXXX |
Total Cash received as subscription during the current year |
XXXX |
|
Subscription in advance c/d (collected for subsequent year) |
XXXX |
Subscription in arrears c/d (not yet collected for current year) |
XXXX |
|
|
XXXX |
|
XXXX |
|
Subscription in arrears b/d |
XXXX |
Subscription in advance b/d |
XXXX |
Download 'Subscription Account Format' 
Note:
- Subscription in arrears appears as Current Assets in the Balance Sheet.
- Subscription received in advance appears as Current Liability in the Balance Sheet.
Other adjustments
Donations: Donations for general purpose unless specifically mentioned appear in Income and Expenditure Account. However, Donations for specific purpose such as construction of building and mentioned as ‘capitalized’ will appear in Receipt & Payment Account and Balance Sheet.
Similarly, all other receipts, unless mentioned, as ‘capitalized’ will appear Receipts and Payments Account and Income and Expenditure Account. If they are ‘capitalized’ then they will appear in Receipts and Payments Account and Balance Sheet