Question

Income and expenditure account shows subscription at 2,50,000. subscriptions accrued in the beginning of the year and at the end of the year were 2 5,000 and 37,500 respectively. the amount of subscriptions received appearing in receipts and payments account will be

Answer 1

The amount of subscriptions received appearing in the receipts and payments account will be 2,37,500, after adjusting for the beginning and ending subscriptions accrued.

Step-by-step explanation:

The student has asked about calculating the amount of subscriptions received that would appear in the receipts and payments account. The Income and Expenditure account shows subscriptions of 2,50,000. Subscriptions accrued at the beginning of the year were 25,000, and at the end of the year, they were 37,500.

To determine the amount of subscriptions received, we need to adjust the figure from the Income and Expenditure account by adding the beginning accrued subscriptions and subtracting the end accrued subscriptions as follows:

• Subscriptions reported: 2,50,000
• Plus subscriptions accrued at the beginning: 25,000
• Less subscriptions accrued at the end: 37,500

The calculation will be 2,50,000 + 25,000 - 37,500, giving us the amount of subscription received during the year to report in the receipts and payments account, which is 2,37,500.