Scenario: Green Valley Tennis Club
The club has 100 members, each paying an annual subscription of $50. Provide the Subscriptions Account for the year ended 31 December 2025 based on this data:
- 1 Jan 2025: Subscriptions in Arrears: $400
- 1 Jan 2025: Subscriptions in Advance: $200
- During 2025: Total Cash Received: $5,100
- 31 Dec 2025: Subscriptions in Arrears: $300
- 31 Dec 2025: Subscriptions in Advance: $500
Task: Complete the T-Account
Remember: Income and Expenditure (I&E) is the balancing figure that represents the actual income for the year.
| Debit (Dr) | Credit (Cr) | ||
|---|---|---|---|
| Balance b/d (Arrears) | $400 | Balance b/d (Advance) | $200 |
| Income & Exp? | [ ? ] | Bank (Cash Received) | $5,100 |
| Balance c/d (Advance) | $500 | Balance c/d (Arrears) | $300 |
| TOTAL | [ ? ] | TOTAL | [ ? ] |
Click to reveal the Answer & Logic
The Calculation:
Total Credits ($200 + $5,100 + $300) = $5,600
Income to I&E = $5,600 - $400 (Op. Arrears) - $500 (Cl. Advance) = $4,700
Check: Does this make sense? The club expected $5,000 (100 members x $50). If they only earned $4,700, it might mean some members haven't paid or left during the year!