Question

Given, subscription received in 1990
For the year 1989-Rs. 500
For the year 1990-Rs. 7,000
For the year 1991-Rs. 400
1990-subscription outstanding on 31st December, 1990:Rs. 250
The amount of subscription to be posted to income and expenditure account of 1990 is?

• A. Rs. 7,000
• B. Rs. 7,250
• C. Rs. 7,900
• D. Rs. 8,150

Answer 1

The correct option is B Rs. 7,250

Subscriptions received in the current year 7,900

(7000+500+400)

Add:- Outstanding subscriptions (for the year 1990) 250

Less:- Advance subscriptions (For the year 1991) (400)

Outstanding subscriptions (For the year 1989) (500) (900)

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Subscriptions for the year end 7,250

Subscriptions that are to be posted in the Income and expenditure account should relate only to the current year.