As per Receipts and Payments Account for the year ended on March 31,2020,subscriptions received were ₹2,50,000, subscription outstanding on 1-04-2019 ₹50,000, subscription received in advance as on 31-3-2020 are ₹30,000.
Subscriptions for the year 2019-2020 will be:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹1,70,000
Income for 2019-20 counts only the subscriptions that belong to that year. The amount received is adjusted for what relates to other years.
Subscriptions received during the year = ₹2,50,000
Less: outstanding on 1-04-2019 (belongs to 2018-19, received this year) = ₹50,000
Less: received in advance on 31-3-2020 (belongs to 2020-21) = ₹30,000
Subscriptions for 2019-20 = ₹1,70,000
Deducting only one of the two adjustments gives ₹2,00,000 or ₹2,20,000; adding the advance (₹2,30,000) treats next year’s money as this year’s.
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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