Calculate the amount of subscription to be shown in Income and expenditure A/C for the year ending 31st March 2022
Subscription received during the year 2021-22 Rs. 100,000
Outstanding subscription for the year 2020-21 Rs. 10000
Outstanding subscription for the year 2021-22 Rs. 20000
Subscription received in advance in 2020-21 Rs. 5000
Subscription received in advance in 2021-22 Rs. 4000
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs. 1,11,000
Only the subscription that belongs to 2021-22 is income of the year. The amount received is adjusted for the parts that relate to other years.
Subscription received during 2021-22 = Rs. 1,00,000
Less: Outstanding of 2020-21 received this year = Rs. 10,000
Add: Outstanding for 2021-22 = Rs. 20,000
Add: Received in advance in 2020-21 for 2021-22 = Rs. 5,000
Less: Received in advance in 2021-22 for 2022-23 = Rs. 4,000
Income for 2021-22 = Rs. 1,00,000 − Rs. 10,000 + Rs. 20,000 + Rs. 5,000 − Rs. 4,000 = Rs. 1,11,000
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):
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