Excellent Sports Club received subscription of ₹4,70,000 during the year 2022-23. The following information was available:
| 31 March 2022 | 31 March 2023 | |
|---|---|---|
| Subscription Due | ₹25,000 | ₹30,000 |
| Subscription Received in Advance | ₹50,000 | ₹15,000 |
Calculate subscription income for the year ended on March 31, 2023.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹5,10,000
Subscription income is the amount that belongs to the current year, whatever was received in cash:
Subscription received during 2022-23 = ₹4,70,000
Less: Due on 31 March 2022 (income of last year) = ₹25,000, leaving ₹4,45,000
Add: Due on 31 March 2023 (income of this year, not yet received) = ₹30,000, giving ₹4,75,000
Add: Received in advance on 31 March 2022 (received last year for this year) = ₹50,000, giving ₹5,25,000
Less: Received in advance on 31 March 2023 (belongs to next year) = ₹15,000
Subscription income for 2022-23 = ₹5,10,000