There are 50 members in the Rotary Club, which provides medical services to people. Each member pays ₹1,000 as subscription. During the financial year 2021-22, 10 members paid only ₹7,000 out of total subscription, 5 members paid subscription for financial year 2020-21. 2 members left the organisation at the beginning of the year without any payment. Amount credited to Income and Expenditure Account will be:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹48,000
Subscription is income on the accrual basis: the amount credited is the subscription due for the current year from those who are members during the year, whether or not it is received.
Members liable for 2021-22 = 50 − 2 (left at the beginning of the year) = 48
Subscription for 2021-22 = 48 × Rs. 1,000 = Rs. 48,000
The short payment by 10 members (Rs. 3,000 still due) is outstanding subscription, added to the income, not deducted. Subscription received for 2020-21 belongs to that year and is not income of 2021-22.
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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