40 Payments Account records the amount of actual subscriptions received while the Income and Expenditure Account records only the subscriptions which relate to the accounting period, whether received or not. Adjustments may, therefore, be required to be made to find out the actual amount of income from subscription. The following illustration is being given to clarify this point: Illustration: From the following extracts of Receipts and Payments Account and the additional information, you are required to calculate the Income from Subscriptions for the year ending 31 December, 1997 and show them in the Income and Expenditure Account, and the Balance Sheet of a Club. RECEIPTS AND PAYMENTS ACCOUNT FOR THE YEAR ENDING 31ST DECEMBER 1997 Dr. Cr. Rs. Payments Rs. Receipts To Subscriptions 1996 5,000 1997 30,000 1998 6,000 41,000 Additional Information (i) Subscription outstanding on 31.12.96 Rs. 6,000 ii) Subscription outstanding on 31.12.97 Rs. 5,000 iii) Subscription received in advance on 31.12.96 Rs. 6,000