There is a balance in Income & Expenditure a/c of ₹55,000 for subscription. Outstanding Subscription at the end of the year and at the beginning of the year was ₹8,000 and ₹15,000 respectively. How will it be shown in Receipt and Payment Account?
Answer & explanation
Correct answer: option 1
Subscription for the year - 55,000
Add : Subscription outstanding at the beginning- 15,000
Less : Subscription outstanding at the end - 8,000
Debited to R & P A/c - ₹62,000