Receipt and Payment a/c for the year ending 31.3.22.
| Locker Rent | Rs.17,050 |
Additional Information:
Locker rent Rs.3,050 outstanding for the year 2020-21 and Rs.1,500 for 2021-22.
Locker rent received on advance at the end of current year i.e on 31.3.22 is Rs.1,000.
What amount of Locker Rent will be shown in Income and Expenditure A/C?
Choose the correct option:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Rs.14,500 Cr. to Income and Expenditure A/C
Locker rent is an income, so it goes on the income (credit) side of the Income and Expenditure Account, and only the rent that relates to the current year 2021-22 is taken. The Receipt and Payment Account shows the cash received during the year, which includes the arrears of the previous year and the advance for the next year.
Locker rent received during 2021-22 = Rs. 17,050
Less: Received for 2020-21 (outstanding of the previous year) = Rs. 3,050
Less: Received in advance for 2022-23 = Rs. 1,000
Add: Outstanding for 2021-22 = Rs. 1,500
Locker rent for 2021-22 = Rs. 17,050 − Rs. 3,050 − Rs. 1,000 + Rs. 1,500 = Rs. 14,500, credited to Income and Expenditure Account
Rs. 17,600 is the amount obtained by adding the arrears instead of deducting them, and a debit would treat the rent as an expense.
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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