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  • Notes On Subscription Accounts

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    Abiramee Ramalingam
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    Subscriptions are recorded in the Receipt and Payment account when received but must be adjusted to calculate the correct amount for the Income and Expenditure account for a given year. This involves adding subscriptions received in advance for that year and subtracting subscriptions received in advance for the next year, as well as adding subscriptions in arrears at the end of the year and subtracting those at the start. Alternatively, a separate Subscription account can be used to track these adjustments and determine the final subscription amount to record in the Income and Expenditure account for the year. Donations for general purposes appear in the Income and Expenditure account but donations for specific capital purposes appear in the Receipt and Payment account and Balance Sheet.

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    igcse subscription accounts

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    Notes on Subscription Accounts

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    Subscriptions are recorded in the Receipt and Payment account when received but must be adjusted to calculate the correct amount for the Income and Expenditure account for a given year. This involves adding subscriptions received in advance for that year and subtracting subscriptions received in advance for the next year, as well as adding subscriptions in arrears at the end of the year and subtracting those at the start. Alternatively, a separate Subscription account can be used to track these adjustments and determine the final subscription amount to record in the Income and Expenditure account for the year. Donations for general purposes appear in the Income and Expenditure account but donations for specific capital purposes appear in the Receipt and Payment account and Balance Sheet.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    663 views2 pages

    Notes On Subscription Accounts

    Uploaded by

    Abiramee Ramalingam
    Subscriptions are recorded in the Receipt and Payment account when received but must be adjusted to calculate the correct amount for the Income and Expenditure account for a given year. This involves adding subscriptions received in advance for that year and subtracting subscriptions received in advance for the next year, as well as adding subscriptions in arrears at the end of the year and subtracting those at the start. Alternatively, a separate Subscription account can be used to track these adjustments and determine the final subscription amount to record in the Income and Expenditure account for the year. Donations for general purposes appear in the Income and Expenditure account but donations for specific capital purposes appear in the Receipt and Payment account and Balance Sheet.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
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    Download as docx, pdf, or txt
    of 2

    Adjustments in Final Accounts (Nontrading 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 Less Subscription in arrears, at the starting of the year Add Subscription received in advance for 2009, in previous years. Add Subscription in arrears, at the end of 2009 Less Subscription received in advance (for next year), at the end of the year Subscription revenue for Year 2010 1000 200 100 300 100 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 Amount Subscription in arrears (b/d) (not collected during the previous year) Subscription received during current XXXX XXXX Subscription received in advance b/d (collected during previous year) Total Cash received as subscription during Cr. Amount XXXX

    XXXX

    year (from Income & Expenditure Account) Subscription in advance c/d (collected for subsequent year) XXXX Subscription in arrears b/d XXXX XXXX

    the current year

    Subscription in arrears c/d (not yet collected for current year)

    XXXX

    XXXX Subscription in advance b/d XXXX

    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 wi ll appear in Receipts and Payments Account and Balance Sheet

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