Question

Subscription received in cash during the year amounted to Rs. 40,000; subscription outstanding at the end of the previous year was Rs. 1,500 and outstanding at the end of the current year was Rs. 2,000. Subscription received in advance for next year was Rs. 800. The amount credited to Income and Expenditure Account will be:

• A. Rs. 38700
• B. Rs. 39700
• C. Rs. 40300
• D. Rs. 41300

Answer 1

The correct option is B

Rs. 39700

Income for the year = 40,000 - 1,500 + 2,000 + 800
= Rs 39,700