Sign In

JAMB - Accounts Principles Of Accounts (2019 - No. 18)

Use the information to answer this question
Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:


Rates owing
Insurance prepaid
Subscription in arrears		 1/199
3,600
50
700		 31/12/99
2000
1000
600

Use the information to answer this question
Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:


Rates owing
Insurance prepaid
Subscription in arrears		 1/199
3,600
50
700		 31/12/99
2000
1000
600

Use the information to answer this question
Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:


Rates owing
Insurance prepaid
Subscription in arrears		 1/199
3,600
50
700		 31/12/99
2000
1000
600
The figure ₦1000 represent what in the balance sheet.
Assets
Liability
capital
Subscription

Explanation

The ₦1000 represent liability in the balance sheet, since it is paid by the members representing dues for next year. Subscription in advance are liabilities, because the company that received the money has not yet earned it and it has an obligation (a liability) to deliver the related goods or services in the future.

Comments (0)

Advertisement