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CS Professional · CSR and Social Governance · Financial and Non-financial Reporting of Different Non-Corporate Entities

Jan Seva Trust's Receipts and Payments Account shows subscriptions received of Rs 3,40,000 during the year. Subscriptions outstanding were Rs 20,000 at the start and Rs 35,000 at the end; no advance subscriptions exist. What subscription income goes to the Income and Expenditure Account?

Subscription income is Rs 3,55,000. Take cash received of Rs 3,40,000, subtract the opening outstanding of Rs 20,000 relating to the previous year, and add the closing outstanding of Rs 35,000 relating to the current year.

  1. ARs 3,25,000Correct
  2. BRs 3,40,000
  3. CRs 3,55,000
  4. DRs 3,95,000

Explanation

Income = receipts - opening outstanding + closing outstanding = 3,40,000 - 20,000 + 35,000 = 3,55,000. Check: 20,000 + 3,55,000 - 3,40,000 = 35,000 closing outstanding, which reconciles. Rs 3,25,000 results from reversing the adjustments.

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