Question : How much amount will be recorded in Income and Expenditure A/c If the club has 600 members each paying an annual subscription of Rs. 200. Outstanding Subscription at the end of the year is Rs. 3,000.
Option 1: Rs. 1,17,000
Option 2: Rs. 1,20,000
Option 3: Rs. 1,23,000
Option 4: Rs. 1,26,000
Correct Answer: Rs. 1,20,000
Solution : An organization's complete accounting of all its receipts and outlays for a given fiscal year is known as an income and expenditure account. This account, which is prepared on an accrual basis, captures all income and outlays for a specific year. Amount credited to Income and Expenditure A/c = Annual subscription X Number of members = Rs.200 X 600 = Rs.1,20,000.
Only the subscription related to the current year is recorded in Income and Expenditure A/c. Hence, the correct option is 2.
Question : How much amount is recorded in Income and Expenditure A/c if there are 800 members, each paying an annual subscription of Rs.120? Subscriptions received during the year Rs. 54,000; Subscription received in advance at the beginning of the year Rs.1,000.
Option 1: Rs. 96,000
Option 2: Rs. 54,000
Option 3: Rs. 97,000
Option 4: Rs. 95,000
Question : There are 1000 members in the sports club paying an annual subscription of Rs 50 each. Subscription received during the year Rs 38,000 including Rs 6000 for next year. -------- will be shown as an outstanding subscription at the end of the year.
Option 1: Rs 50,000
Option 2: Rs 18,000
Option 3: Rs 6000
Option 4: Rs 12,000
Question : There are 200 members, each paying an annual subscription of Rs.1,000. Subscription received during the year Rs.1,95.000, Subscription received in advance at the beginning of the year Rs.3000 and at the end of the year Rs.2,000. The amount shown in the Income and Expenditure account will be:
Option 1: Rs. 2,00,000
Option 2: Rs. 1,96,000
Option 3: Rs. 1,94,000
Option 4: Rs. 2,10,000
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