Subscription received during the year is ₹20,000; the amount received in advance for the next year is ₹1,200; amount outstanding for the current year is ₹1,600. Select the amount of subscription to be credited to the Income & Expenditure Account is:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹20,400
The Income and Expenditure Account takes the subscription that belongs to the current year (accrual basis).
Subscription received during the year = ₹20,000
Add: outstanding for the current year = ₹1,600
Less: received in advance for the next year = ₹1,200
Subscription credited to the Income and Expenditure Account = ₹20,400
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):
|
