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 option2- ₹20,400.
Subscription received during the year = 20,000
Add: outstanding subscription for the current year = 1,600
Less: Advance subscription for the next year = 1,200
Subscription credited to income and expenditure account = (20,000 + 1,600 -1,200)
= 20,400