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CA Foundation · Accounting · Financial Statements of Not-for-Profit Organisations

Anand Sports Club's Receipts and Payments Account shows subscriptions received ₹3,50,000 for 2024-25. Subscriptions outstanding were ₹30,000 at the start and ₹45,000 at the end of the year. Subscriptions received in advance for 2025-26 are ₹12,000 at the year end, and none existed at the start. What amount of subscriptions is credited to the Income and Expenditure Account for 2024-25?</br>

The subscription income for the year is ₹3,53,000. Start with cash received of ₹3,50,000, deduct last year's outstanding of ₹30,000, add this year's outstanding of ₹45,000, and deduct ₹12,000 received in advance for the next year, since it is not income of this year.

  1. A₹3,53,000Correct
  2. B₹3,77,000
  3. C₹3,23,000
  4. D₹3,47,000

Explanation

Income = receipts - opening outstanding + closing outstanding - advance at end + advance at start = 3,50,000 - 30,000 + 45,000 - 12,000 + 0 = ₹3,53,000. Adding the advance instead of deducting it would give ₹3,77,000, which is wrong.

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