Question

Subscriptions received in cash during the year amounted to ₹ 40,000; subscription outstanding at the end of the previous year was ₹ 1,500 and outstanding at the end of the current year was ₹ 2,000. Subscription received in advance for next year was ₹ 800. The amount credited to the Income and Expenditure Account will be:

Options

• ₹ 38,700

• ₹ 39,700

• ₹ 40,300

• ₹ 41,300

Answer 1

₹ 39,700

Explanation:

Amount to be credited to Income and Expenditure A/c 40,000 (received during the year) − 1,500 (subscription outstanding for provide year) + 2,000 (subscription outstanding for current year) − 800 (subscription received in in advance)

= 40,000 − 1,500 + 2,000 − 800

= ₹ 39,700