Saadiyat Beach Club charges its members an annual subscription of AED20,000 per member. It accrues for subscriptions owing at the end of each year and also adjusts for subscriptions received in advance.
• On 1 January 2014, 18 members had not yet paid their subscriptions for the year 2013.
• In December 2013, 4 members paid AED80,000 for the year 2014.
• During the year 2014 it received AED7,420,000 in cash for subscriptions:
AED
For 2013 360,000
For 2014 6,920,000
For 2015 140,000
7,420,000
• At 31 December 2014, 11 members had not paid their 2014 subscriptions.
Required:
Prepare the Club’s Subscription Account to show the amount that should be recognized as revenue for the year ended 31 December 2014.