Question : During the year ended 31st March 2020, subscriptions received were Rs. 31,00,000. These subscriptions include Rs. 60,000 for the year ending 31st March 2019 and Rs. 80,000 for the year ending 31st March 2021. On 31st March 2020, subscriptions due but not received were Rs. 1,00,000. The corresponding amount on 1st April 2019 was  1,20,000. Determine the amount that should be credited to the Income and Expenditure Account as subscriptions for the year ended 31st March 2020.

Option 1: Rs. 30,00,000

Option 2: Rs. 31,40,000

Option 3: Rs. 31,00,000

Option 4: Rs. 25,80,000


Team Careers360 1st Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Rs. 30,00,000


Solution : Subscription A/C

To o/s sub
(op. Balance)
1,20,000 Cash
(Receipt and Payment)
31,00,000
Sub.Received in Advance
(Closing Balance)
80,000 Outstanding subscription 1,00,000
Income and Exp. A/C 30,00,000
32,00,000 32,00,000

The answer is Rs. 30,00,000.
Hence, the correct option is 1.

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