Question

From the following information ascertain the amount of subscriptions to be credited to the income and expenditure account for the year 2020.
Subscriptions received during the year:
For 2019 Rs. 1,000
For 2020 Rs. 10,250
For 2021 Rs. 500.
Subscription received in 2019 for 2020 Rs. 700.
Subscription outstanding on 31-12-2020 Rs. 900.
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Answer 1

Answer:

Explanation:

Subscription received during the year for 2020        =  10250

(+)  Subscriptions received in 2019 for 2020              =   700

(+)  Subscriptions outstanding on 31-12-2020             =    900

subscriptions to be credited to the Income and

                       Expenditure Account for the year         =  11850

 Points to remember:

• We don't include subscription received for previous year or for next year in current year.

• We have to include subscription received in previous year for current year.

• subscription outstanding for current year only have to included.