subscription received in cash during the year amounted to 760,000; subscription received in advance for next year was 73,000 and received in advance during previous year was 72,000. subscription in arrear at the end of current year was 75,400. the amount credited to inco & expenditure account will be?
Answers
Answer:
8,34,400
Explanation:
Cash- 7,60,000
Advance for next year- 73,000
Advance of previous year- 72,000
O/S Subscription current year - 75,400
Subscription for the year= Cash Received for the year
+ Advance of Previous Year
+ O/S of Current Year
- Advance of Next Year
- O/S of Previous Year
= 7,60,000 + 72,000 + 75,400 - 73,000
= 8,34,400
I have found in some MCQ's that the answer given is 64,400.
Which is incorrect.
How?
From the above formula, we can conclude that,
Cash Received for the Year = Subscription for the Year
- Advance of Previous Year
- O/S of Current Year
+ Advance of Next Year
+ O/S of Previous Year
= 64,400 +73,000 -72,000 -75,400
= -10,000
But as per the qus cash received is 7,60,000, therefore either there is an error in qus or the answer would be 8,34,400.
Answer:
Explanation:
Subscription received in cash during the year amounted to 760,000; subscription received in
advance for next year was 73,000 and received in advance during previous year was 72,000.
Subscription in arrear at the end of current year was 75,400. The amount credited to Income &
Expenditure Account will be: