Question

27. Subscription owing N6,000 at 31/12/2014.

Subscription in advance 14,000 at
31/12/2014. Cash received as subscription
during the year was N80,000.
The subscription for the year 2014 was
(a) N90,000 (b) N82,000
(c) A78,000 (d) N70,000

Answer 1

$72,000

Calculation for The subscription for the year 2014

Using this formula

2014 Subscription=Cash received-Subscription in advance+Subscription owing

Let plug in the formula

2014 Subscription=$80,000-$14,000+$6,000

2014 Subscription=$72,000

Therefore The subscription for the year 2014 was $72,000