Subscription received during the year is ₹20,000; amount received in advance for the next year is ₹1,200; amount outstanding for the current year is ₹1,600. Select the amount of subscription to be credited to the Income & Expenditure Account is:

₹20,400

The correct answer is Option (2) - ₹20,400.

Subscription received during the year = ₹20000
Add: Amount outstanding for the current year = 1600
                                                          = (20000 + 1600)
                                                          = ₹21600
Less: Amount received in advance for next year = 1200
                                                                      = (21600 - 1200)
                                                                      = ₹20400
This ₹20400 is the amount of subscription that will be credited to the income and expenditure account.