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
The Income and Expenditure Account shows only the subscription that belongs to the current year, whether it was received last year, this year or not at all.
Subscription received during the year = ₹80,000
Less: Received in advance for next year = ₹2,000
Add: Received last year in advance for this year = ₹10,000
Add: Accrued (outstanding) at the end of the year = ₹5,000
Subscription for the current year = ₹80,000 − ₹2,000 + ₹10,000 + ₹5,000 = ₹93,000
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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