Subscription income for the current year irrespective of whether the money is received or not is shown in _____

Cash accounting

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Accrual accounting

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Government accounting

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Management accounting

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Solution

The correct option is B
Accrual accounting

Subscription income for the current year irrespective of whether the money is received or not is shown in income and expenditure Account.

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Similar questions

Q. Rs. 1,00,000 received as the annual membership subscription. Out of this Rs. 20,000 is pertaining to the previous accounting period, whereas Rs. 10,000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting year.

Rs 20,000 received as the annual membership subscription. Out of this, Rs 4,000 is pertaining to the previous accounting period whereas Rs 2,000 is receivable at the end of the current accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting.

Rs. 10,000 received as the annual membership subscription. Out of this, Rs.2,000 is pertaining to the previous accounting period whereas Rs.1,000 is receivable at the end of the current accounting period. Of this 1,000, 200 is peratins to the previous accounting period. Calculate the amount of subscription that will be shown in the income and expenditure account for this accounting

Q. In a Club, subscription received for current year Rs. 2,50,000.

Subscription of current year received in the previous year Rs. 25,000. Subscription out-standing for current year 45,000.

Subscription received in advance in current year Rs. 11,000 and subscription of previous year received in current year Rs. 35,000.

The amount of subscription to be shown in Income and Expenditure Account will be ___________.

Q. Prepare Income and Expenditure Account from the following Receipts and Payments Account of Delhi Nursing Society for the year ended 31st March, 2018:

RECEIPTS AND PAYMENTS ACCOUNT for the year ended 31st March, 2018
Dr.				Cr.
Receipts	₹	Payments	₹
To Balance b/d (Cash at Bank) To Subscriptions To Fees from Non-members To Government Grant To Donations for Building Fund To Interest	2,01,000 1,11,500 27,000 1,00,000 1,56,000 3,800	By Salaries of Nurses By Board , Laundry and Domestic Help By Rent, Rates and Taxes By Cost of Car By Expenses of Car By Drugs and Incidental Expenses By Balance c/d (Cash at Bank)	65,600 38,000 20,000 2,00,000 84,000 67,000 1,24,700


	5,99,300		5,99,300

Donation of ₹10,000 received for Building Fund was wrongly included in the Subscriptions Account . A bill of medicines purchased during the year amounted to ₹12,800 was outstanding . Government Grant is not for a specific purpose.

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Subscription income for the current year irrespective of whether the money is received or not is shown in _____

The correct option is B Accrual accounting Subscription income for the current year irrespective of whether the money is received or not is shown in income and expenditure Account.

The correct option is B
Accrual accounting

Subscription income for the current year irrespective of whether the money is received or not is shown in income and expenditure Account.