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Question : Subscription credited to the Income and Expenditure account was Rs 4,00,000, Subscription outstanding at the end of the previous year was Rs 30,000. and outstanding at the end of the current year was Rs 35,000. The subscription received in advance for next year was Rs 9,000 and the received in Advance during the previous year was  Rs 8,000. What was the amount recorded in the Receipts and Payment Account? 

Option 1: Rs 4,04,000

Option 2: Rs 4,96,000

Option 3: Rs 3,91,000

Option 4: Rs 4,00,000


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th Jan, 2024

Correct Answer: Rs 4,96,000


Solution : Subscription credited to Income and Expenditure Account    =     Rs.5,00,000
(+) Subscription outstanding at the end of the previous year =     Rs.30,000
(-) Outstanding at the end of the current year                        =    (Rs.35,000)
(+) Subscription received in advance for the next year          =     Rs.9,000
(-) Received in advance during the previous year                  = (Rs.8,000)
Amount recorded in the Receipts and Payment Account       = Rs.4,96,000
Hence, the correct option is 2.

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