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CSEET · Fundamentals of Accounting · Accounting for Non-Profit Organizations

Green Valley Club received subscriptions of Rs 84,000 during the year 2024-25. Subscriptions outstanding were Rs 6,000 at the start and Rs 9,000 at the end of the year. Subscriptions received in advance were Rs 3,000 at the end and nil at the start. What amount of subscription income is credited to the Income and Expenditure Account?

Subscription income is Rs 84,000. Start with receipts of Rs 84,000, subtract opening outstanding of Rs 6,000, add closing outstanding of Rs 9,000, and subtract closing advance of Rs 3,000. The adjustments net to zero, leaving the current year's accrual-based income.

  1. ARs 87,000Correct
  2. BRs 90,000
  3. CRs 84,000
  4. DRs 81,000

Explanation

Income = Receipts 84,000 - opening outstanding 6,000 + closing outstanding 9,000 + opening advance 0 - closing advance 3,000 = 84,000. Recompute: 84,000 - 6,000 = 78,000; +9,000 = 87,000; -3,000 = 84,000. So the correct figure is Rs 84,000. Rs 87,000 ignores the advance received.

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