• thinkigcse.com

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' adobe icon

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

Exciting News!

IMPORTANT MESSAGE

Quizzes and worksheets on this website have been developed in Flash format. Flash is no more supported by browsers. Therefore, you might see blank pages on some instances. Install Flash player plugin for Chrome from Chrome Web Store. Click here 

Similarly, for other web browsers you will have to activate the relevant flash player plugins.

JOIN OUR ONLINE COURSES

New Youtube Channel - ThinkIGCSE

Hi Everyone, I have launched a new YouTube channel with more than a 100 videos on  Economics and Business Studies, tailored specifically for IGCSE and A Level and IBDP students.

Subscribe now and join us on this learning journey: @thinkIGCSE

WHO'S ONLINE

We have 142 guests and no members online

Save
Cookies user preferences
We use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.
Accept all
Decline all
Read more
Analytics
Tools used to analyze the data to measure the effectiveness of a website and to understand how it works.
Google Analytics
Our website uses Google Analytics to understand how you interact with our site and improve your browsing experience. These cookies collect information in an anonymous form, including the number of visitors to the site, where visitors have come from, and the pages they visited. The data helps us analyze trends and user behavior to enhance our website's functionality and content.
Accept
Decline
Marketing
Set of techniques which have for object the commercial strategy and in particular the market study.
Marketing
Our website uses Google marketing cookies to deliver personalized ads and measure the effectiveness of our advertising campaigns. These cookies track your online activity to help us show you relevant ads on Google services and partner websites.
Accept
Decline