Calculate subscription of current year to be credited to Income and Expenditure account from the following information :
Subscription Received ₹80,000,
Subscription Received in Advance Last year ₹10,000, subscription Received in Advance during this year ₹2,000 and Accrued Subscription at the end of current year ₹5,000 :
Answer & explanation
Correct answer: option 2
The correct answer is option (2)- ₹93,000.
Subscription received = 80,000
Add: Sub. received in advance last year = 10,000
Less: Sub received in advance during the year = 2,000
Add: Accrued sub at end of year = 5,000
Sub credited to income & exp account = (80,000 + 10,000 - 2,000 + 5,000)
= 93,000