Question

A&E) Subscription received in cash Rs 60,000; subscription received in advance for next year Rs 3,000 and received in advance during previous year is Rs 2,000.Subscription in arrears at the end of current year Rs 5,400 . Amount credited to Income and Expenditure Account will be :(a)Rs 53,600(b)Rs. 55,600(c)Rs. 66,400(d)Rs. 64,400

Answer 1

Amount credited to Income and Expenditure Account = Rs64,400

Step-by-step explanation:

Given:

Subscription received in cash = Rs60,000

Subscription received in advance = Rs3,000

Subscription in arrears at the end of current year = Rs5,400

Subscription received in for previous year = Rs2,000

Find;

Amount credited to Income and Expenditure Account

Computation:

Amount credited to Income and Expenditure Account = Subscription received in cash + Subscription in arrears at the end of current year + Subscription received in for previous year - Subscription received in advance

Amount credited to Income and Expenditure Account = 60,000 + 5,400 + 2,000 - 3,000

Amount credited to Income and Expenditure Account = 67,400 - 3,000

Amount credited to Income and Expenditure Account = Rs64,400