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Question : Subscription received in cash during the year amounted to Rs 1,00,000 (excluding life membership fee Rs 10,000). Subscription outstanding at the end of previous year was Rs 2,000 and outstanding at the end of the current year was Rs 2,500. Subscription received in advance for next year was Rs 800. what will be the amount credited to Income and Expenditure Account?

Option 1: Rs 99,700

Option 2: Rs 1,09,700

Option 3: Rs 1,00,500

Option 4: Rs 1,02,500


Team Careers360 19th Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: Rs 99,700


Solution : Subscription received in cash during the year                    = Rs 1,00,000
(-) Outstanding at the end of previous year                          = (Rs 2,000)
(+) Outstanding at the end of the current year                      = Rs 2,500
(-) Subscription received in advance for next year                = (Rs 800)   
Amount credited to Income and Expenditure Account           = Rs.99,700
Hence, the correct option is 3.

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