Question : Subscription received in cash during the current year amounted to Rs. 15000. Subscription outstanding at the end of the previous year was Rs. 500 and outstanding at the end of the current year was Rs. 750 Subscription received in advance for next year was Rs. 250 The amount credited to Income and Expenditure Account will be:
Option 1: Rs. 15,000
Option 2: Rs. 16,500
Option 3: Rs. 31,000
Option 4: Rs. 30,500
Correct Answer: Rs. 15,000
Solution :
Subscription received = 15000
Add outsanding Sub = 750
at the end of the year 15750
less outsanding = (500)
Previous year 15250
less Advances 250
Income and Exp.A/C 15000
Answer =
Rs. 15,000
Hence, the correct option is 1.