Subscription received during the year was ₹80,000, outstanding subscription at the end of the current year was ₹5,000, subscription advance at the end of the year was ₹5,000. How much subscription will be credited in Income and Expenditure Account?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- ₹80,000.
Subscription during the year = 80,000
Add: Outstanding subscription at the end of the current year = 5,000
= (80,000 + 5,000)
= 85,000
Less: Advance subscription at the end of the year = 5,000
= (85,000 - 5,000)
= 80,000
₹80,000 will be credited to income and expenditure account.