Pragya Madan, an Ex Indian hockey woman player decided to start a hockey academy to train young enthusiastic girls of her village with the support of her family, She started Bright Hockey Academy. On 1st April 2022. Her neighbor Ishwar died and he willed his land to start the academy. Her father 'Ramkumar' spent Rs.20,00,000 for construction of pavilion. 100 young girls joined the academy and they paid yearly of Rs.1,000 each. 10 members paid a single amount Rs.25,000 to get life membership. Hockey and balls purchased during the year amounted to Rs.27,000 Closing stock of these item is nil. Based on the above information you are required to answer the questions.
Amount of subscription credited during the year will be
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Rs.1,00,000
Subscription is the yearly membership fee and is the income of the year. Only the yearly fee of the 100 girls is subscription; the Rs. 25,000 paid by 10 members for life membership is a capital receipt and is not credited to the Income and Expenditure Account as subscription.
Subscription credited = 100 members × Rs. 1,000 = Rs. 1,00,000
Adding the life membership fees (Rs. 1,25,000) would treat a capital receipt as income.
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): NCERT (Pre-rationalised edition): |