A club has 300 members each paying ₹100 for annual subscription. Club has received subscription in the beginning of the current year ₹4,000 whereas received during the year ₹20,000.
Calculate amount of outstanding Subscription.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹6,000.
Total Subscription for the year = 300 x 100
= 30,000
Less: Received during the year = 20,000
Less : Received in advance = 4,000
Outstanding Subscription = 30,000 - 20,000 - 4,000
= 6,000