Question

The Evergreen Club was founded on January 1,2008, with 100 members; the annual subscription per member being 250. By the end of that year two (2) members had not paid their subscriptions but nine (9) had paid for a year in advance. Ascertain the amount of subscriptions to be credited to Income and Expenditure account for the year ended December 31, 2008, by preparing a subscriptions account.

Answer 1

Subscription A/c

| Particulars | Amount | Particulars | Amount |
| Subscription in advance (250 x 9) | 2250 | Banks | 26750 |
| Income and expenditure A/c | 25000 | Subscription in arrear (2 x 250) | 500 |
| | 27250 | | 27250 |

Note:

Bank = (98×250)+(9×250)

= 24500+2250

=26750