ABC Welfare Club has provided the following information on 31st March 2021.
Subscription received by the firm during the year ₹6,20,000. Details of which is as follows:
For the year 31st March 2020 30,000
For the year 31st March 2021 90%
For the year 31st March 2022 50,000
Amount of subscription in arrears as at 31st March 2020 was ₹45,000 out of which 20% was not receivable and to be written off.
You are required to answer the questions given below.

What is the amount of subscription in arrears at the end of the year 2021?

₹66,000

Total subscription received = ₹620000 which include 90% of this current year and 80000 (30000+50000) for the last or future year.
So current year subscription is 620000 - 80000= 540000 which is 90%.
So, 100% is 540000 X 90/100 = ₹600000.
So subscription in arrears for the current year is 600000 - 540000 = ₹60000
Subscription in arrears for the previous year is ₹45000 out of which 20% is written off means 9000. So o/s subscription for the year ending 31 March 2020 is 45000 -9000 = 36000
Out of 36000, ₹30000 is received in this year, so 36000-30000= 6000 is O/S for the previous year ending 31 March 2020.
Thus, amount of subscription in arrears at the end of the year 2021 = 60000 + 6000 = ₹66000