Question

Subscription A/c will be credited to Income & Expenditure A/c after making following adjustments:

• A. Subscription Received
  (+) Outstanding Subscription for current year
  (-) Outstanding Subscription for of last year
  (+) Subscription received in advance of last year
  (-) Subscription received in advance of next year
• B. Subscription Received
  (+) Outstanding Subscription for current year
  (+) Outstanding Subscription for of last year
  (-) Subscription received in advance of last year
  (-) Subscription received in advance of next year
• C. Subscription Received
  (-) Outstanding Subscription for current year
  (-) Outstanding Subscription for last year
  (+) Subscription received in advance of last year
  (+) Subscription received in advance of next year
• D. Subscription Received
  (-) Outstanding Subscription for current Year
  (+) Outstanding Subscription for of last year
  (-) Subscription received in advance of last year
  (+) Subscription received in advance of next year

Answer 1

The correct option is A Subscription Received

(+) Outstanding Subscription for current year
(-) Outstanding Subscription for of last year
(+) Subscription received in advance of last year
(-) Subscription received in advance of next year
Subscription amount that has to be credited in the income & expenditure account is calculated after adjusting the various subscription amounts.

The adjustments are outstanding subscriptions for the current and previous year and subscriptions received in advance for the current and previous year. The adjustments have to be treated in the following way :

$Subscriptionamount=Subscriptionreceived(+)Outstandingsubscriptionforcurrentyear(-)Outstandingsubscriptionforpreviousyear(+)Subscriptionadvancedforpreviousyear(-)Subscriptionadvancedforcurrentyear$.