Question

the receipts and payments account shows the following details
subscriptions areas rupees 500
current rupees 10500
advance rupees 800
there are 1200 members each paying and annual subscription of rupees 10 the amount to be credited to income and expenditure account will be​

Answer 1

Answer:

12000

Explanation:

the annual subscripton of each member is 12000.

Answer 2

The calculation for subscription is as follows.

Explanation:

in receipts and payments account, all the transactions for the year are recorded as it is. we transfer these amounts to income and expenditure account to calculate surplus. subscriptions are income for us so it comes in income side of the income and expenditure account but we will only write the subscriptions that are relating to the current year.

in the question we have given, subscription arears Rs.500 and advance subscription Rs.1,200 and subscription for this year Rs.800, but we are told that there are 1200 members paying subscription of Rs.10 each so we have no need for the rest information. now, to calculate amount to be credited to income & expenditure a/c, 1200 * 10 = 12,000.