Question : Subscription credited to Income and Expenditure Account was Rs 3,00,000, Subscriptioin received in advance for next year was Rs 30,000 and received in advance during previous year was Rs 20,000. Subscrptions in arrear at the end of current year were Rs 7,000. What was the total subscription recorded in the Receipts and Payment Account?
Option 1: Rs 3,00,000
Option 2: Rs 3,03,000
Option 3: Rs 3,10,000
Option 4: Rs 3,23,000
Correct Answer: Rs 3,03,000
Solution :
Subscription credited to Income and Expenditure Account = Rs 3,00,000
(+) Subscriptioin received in advance for next year = Rs 30,000
(-) Subscription received in advance during previous year = (Rs 20,000)
(-) Subscription in arrear at the end =
(Rs.7,000)
Subscription received in Receipts and Payment Account =
Rs.3,03,000
.
Hence, the correct option is 2.