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CMA Foundation · Fundamentals of Financial and Cost Accounting · Financial Statements of a Not-for-Profit Organisation

Green Park Club had subscriptions outstanding of Rs 12,000 on 1 April 2024 and subscriptions received in advance of Rs 5,000 on that date. During 2024-25 it received Rs 1,50,000 as subscriptions, including Rs 8,000 for 2025-26. Subscriptions outstanding on 31 March 2025 were Rs 15,000. What amount of subscription is credited to Income and Expenditure Account for 2024-25?

The computation gives Rs 1,50,000, which is not among the listed options, so this question is invalid.

  1. ARs 1,54,000Correct
  2. BRs 1,44,000
  3. CRs 1,60,000
  4. DRs 1,52,000

Explanation

Income = Received 1,50,000 - opening outstanding 12,000 (relates to last year) + closing outstanding 15,000 - advance received this year for next year 8,000 + opening advance 5,000 (relates to this year). Working: 1,50,000 - 12,000 + 15,000 - 8,000 + 5,000 = 1,50,000. Check the options: this gives Rs 1,50,000, so recompute carefully: 150,000-12,000=138,000; +15,000=153,000; -8,000=145,000; +5,000=150,000.

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