Subscription received during the year was ₹1,00,000 as per the Receipt & Payment Account. Advance Subscription at the end and at the beginning of the year was ₹5,000 and ₹10,000 respectively.
How will it be shown in Income & Expenditure A/c?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Credit ₹1,05,000.
Subscription received during the year = 1,00,000
Add : Subscription advance at the beginning = 10,000 (Related to current year)
Less : Subscription advance at the end = 5,000 (Related to next year)
= 1,00,000 + 10,000 - 5,000
= 1,05,000
Subscription Credited to Income & Expenditure account is ₹1,05,000.