Accountancy Part AAccounts for Non Profit Organsiation

A club received ₹20,000 as subscription during the year 2016-17 of wh…

A club received ₹20,000 as subscription during the year 2016-17 of which ₹3,000 relates to the year 2015-16, and ₹2,000 to the year 2017-18; and at the end of year 2016-17, ₹6,000 are still receivable. The amount to be shown in the Income and Expenditure account for the year 2016-17 is :

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → ₹21,000

The Income and Expenditure Account takes only the subscription of the current year, whether received or not.

Subscription received in 2016-17 = ₹20,000

Less: subscription for 2015-16 = ₹3,000 → ₹17,000

Less: subscription for 2017-18 (advance) = ₹2,000 → ₹15,000

Add: subscription outstanding for 2016-17 = ₹6,000

Income from subscription for 2016-17 = ₹21,000

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Some Peculiar Items – “… It may be noted that Receipt and Payment Account shows the total amount of subscription actually received during the year while the amount shown in Income and Expenditure Account is confined to the figure related to the current period only irrespective of the fact whether it has been received or not. For example, a club received Rs. 20,000 as subscriptions during the year 2016-17 of which Rs.3,000 relate to year 2015-16 and Rs.2,000 to 2017-18, and at the end of the year 2016-17 Rs.6,000 are still receivable.”

NCERT (Pre-rationalised edition):
Some Peculiar Items

Extract from the NCERT textbook