Read the following information and answer the question.

VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April 2020.

Land was donated by his grandfather worth ₹10,00,000 as per his will. His father Shankar donated ₹5,00,000 for the construction and running the academy. He spent ₹3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid yearly subscription of ₹1,200 each. 10 players paid in advance for the next year 2021 -22. Vijayashankar appointed well experienced coach for them, the coach fee amounted to ₹1,20,000 p.a.

The maintenance expenses amounted to ₹75,000. Bats and balls purchased during the year amounted to ₹15,000. Closing stock of bats and ball amount to ₹1,000.

The amount of subscription to be credited to income and expenditure account will be:

₹2,40,000

The correct answer is option 1- ₹2,40,000.

No of member = 200
Subscription per year per member = 1,200
Subscription for current year = 1,200 x 200
                                          = 2,40,000

This subscription is related to the current year so there is no need of any adjustment. This amount will be credited to income and expenditure account.