Accountancy Part AAccounts for Non Profit Organsiation

There are 500 members in a Rotary club, who provide medical services…

There are 500 members in a Rotary club, who provide medical services to poor people in backward area. Each member pays 1,000 Rs. as subscription. During financial year 100 members paid partial subscription of Rs.80,000. 10 members left without giving yearly subscription. Amount received during current financial year will be

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Rs.4,70,000

The amount received is the full subscription due from all members, less what was not paid.

Subscription due = 500 members × Rs. 1,000 = Rs. 5,00,000
Less: Short payment by 100 members (Rs. 1,00,000 due − Rs. 80,000 paid) = Rs. 20,000
Less: Not paid by the 10 members who left = 10 × Rs. 1,000 = Rs. 10,000
Amount received = Rs. 5,00,000 − Rs. 20,000 − Rs. 10,000 = Rs. 4,70,000

Check: 390 members paid in full (Rs. 3,90,000) and 100 members paid Rs. 80,000, a total of Rs. 4,70,000.

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):
Some Peculiar Items – “… Subscriptions: Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such orgnisations. Subscription paid by the members is shown as receipt in the Receipt and Payment Account and as income in the Income and Expenditure Account.”