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Question : During the year ended 31st March, 2020, subscriptions received were Rs. 21,00,000. These subscriptions include Rs. 30,000 for the year ended 31st March, 2019 and Rs. 40,000 for the year ending 31st March, 2021. On 31st March, 2020, subscriptions due but not received were Rs. 50,000. The corresponding amount on 1st April, 2019 was Rs. 60,000. Determine the amount that should be credited to Income and Expenditure Account as subscriptions for the year ended 31st March, 2020.

Option 1: Rs 20,55,000

Option 2: Rs 20,50,000

Option 3: Rs 2,05,000

Option 4: Rs 20,35,000


Team Careers360 13th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs 20,50,000


Solution : Subscription is received for the year           = 21,00,000
(-) for the year ended 31/03/2019               = (30,000)
(-) for the year ended 31/03/2021                = (40,000)
(+) due but not received (50,000 - 30,000)  = 20,000
Amount is credited to I&E A/c                    = 20,50,000
Hence, the correct option is 2.

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