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?

Credit ₹1,05,000

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.