Question

The cricket club has 50 members and each member pays Rs.20 as monthly subscription. Five members paid advance subscription for the financial year 2013-14 and 10 members failed to pay subscription for the year 2012-13. The amount to be credited as subscription to Income and Expenditure Account would be:

• A. Rs. 12,000
• B. Rs. 10,800
• C. Rs. 9600
• D. Rs. 8000

Answer 1

Answer: (A)

Rs. 12,000

Amount to be credited to Income and expenditure account

= Number of members x annual subscriptions

= 50 members x Rs20 per month x 12months

= Rs-12,000.