Question : Municipal Taxes paid during the year Rs 4,000. Municipal taxes amount to 4,000 per year and are paid upto 30th June every year. Calculate the amount of the subscription debited to the Income and Expenditure Account and also calculate the amount of subscription received in advance last year and also calculate the amount of subscription received in advance at the end of the year.
Option 1: Rs 4,000 debited to Income and Expenditure account and advance paid at the beginning of the year Rs 1,000 and Rs 1,000 paid in advance at the end of the year.
Option 2: Rs 3,000 debited to Income and Expenditure account and Rs 1,000 paid in advance at the end of the year.
Option 3: Rs 4,000 debited to Income and Expenditure Account and advance at the beginning of the year Rs 500 and Rs 500 at the end of the year.
Option 4: Rs 5,000 debited to Income and Expenditure.
Correct Answer: Rs 4,000 debited to Income and Expenditure account and advance paid at the beginning of the year Rs 1,000 and Rs 1,000 paid in advance at the end of the year.
Solution : Amount debited to Income and Expenditure Account = Rs.4,000. Number of quarters in a year = 4. Amount paid in advance at the beginning of the year = Rs.4,000/4 = Rs 1,000 and Rs.4,000/4 = Rs 1,000 paid in advance at the end of the year. Hence, the correct option is 1.
Question : Investment purchased during the year Rs 60,000 and interest on investment received Rs 1,000. 8% interest has accrued on Investment for five month. Calculate the amount credited to Income and Expenditure account and balance of investment at the end of the year.
Option 1: interest on investment credited to Income and Expenditure Account Rs 1,000 and closing balance of Investment is Rs 61,000
Option 2: interest on investment credited to Income and expenditure account Rs 3,000 and investment at the end of the year Rs 62,000
Option 3: Interest on investment credited to Income and Expenditure Account by Rs 2,000 and balance of investment at the end of the year Rs 60,000
Option 4: interest on investment credited to Income and Expenditure Account Rs 1,000 and Investment Balance at the end of the Year Rs 60,000
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
Question : Amount debited to Income and expenditure account as salary Rs 1,42,000. Outstanding salary at the end of the previous year was Rs 20,000 and outstanding salary at the end of current year was Rs 25,000. Salary paid in advance during current year for next year Rs 13,000. What will be the amount of salary paid during the current year?
Option 1: Rs 1,50,000
Option 2: Rs 1,34,000
Option 3: Rs 1,45,000
Option 4: Rs 1,63,000
Question : Subscription credited to the Income and Expenditure account was Rs 4,00,000, Subscription outstanding at the end of the previous year was Rs 30,000. and outstanding at the end of the current year was Rs 35,000. The subscription received in advance for next year was Rs 9,000 and the received in Advance during the previous year was Rs 8,000. What was the amount recorded in the Receipts and Payment Account?
Option 1: Rs 4,04,000
Option 2: Rs 4,96,000
Option 3: Rs 3,91,000
Option 4: Rs 4,00,000
Question : Subscription received in cash during the current year amounted to Rs. 15000. Subscription outstanding at the end of the previous year was Rs. 500 and outstanding at the end of the current year was Rs. 750 Subscription received in advance for next year was Rs. 250 The amount credited to Income and Expenditure Account will be:
Option 1: Rs. 15,000
Option 2: Rs. 16,500
Option 3: Rs. 31,000
Option 4: Rs. 30,500
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