Question

There are 450 members of a Club, each paying an annual subscription of Rs. 500. On 31st March 2008 subscription in arrear totalled Rs. 5,000. Subscription received during the year ended 31st March 2009 amounted to Rs. 2,23,000 including Rs. 4,500 for the year 2007-2008 and Rs. 7,500 for the year 2009-2010. Calculate the amount of subscription in arrear as on 31st March 2009.

• A. 10,500
• B. 500
• C. 14,500
• D. 4,500

Answer 1

The correct option is C 14,500

Dr. Subscription A/c Cr.

To Outstanding Subscription (Op.) To Income & Expenditure A/c$(400\times 500)$ To Subscriptions Rec.in Advance (Cl.)

5,000 2,25,000 7,500 $\overline{2,37,500}$

By Subscriptions Rec. in Advance (Op.) By Receipt & Payment A/c By Outstanding Subscription (Cl.) (Bal.fig.)

- 2,23,000 14,500 $\overline{2,37,500}$