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

Sunrise Sports Club received subscriptions of ₹4,80,000 during the year ended 31 March 2025. Subscriptions outstanding were ₹30,000 on 1 April 2024 and ₹45,000 on 31 March 2025. Subscriptions received in advance were ₹12,000 on 1 April 2024 and ₹20,000 on 31 March 2025. What amount of subscription income should be credited to the Income and Expenditure Account?

Subscription income is ₹4,87,000. Start with cash received ₹4,80,000, deduct opening outstanding ₹30,000, add closing outstanding ₹45,000, add opening advance ₹12,000 now earned, and deduct closing advance ₹20,000 relating to the next year.

  1. A₹4,75,000Correct
  2. B₹4,87,000
  3. C₹4,73,000
  4. D₹4,85,000

Explanation

Income = Receipts 4,80,000 − opening outstanding 30,000 + closing outstanding 45,000 − opening advance (12,000 was already received for this year, so add it) + ... Correctly: 4,80,000 − 30,000 + 45,000 + 12,000 − 20,000 = 4,87,000. Thus the correct figure is ₹4,87,000, and ₹4,75,000 results from mishandling the advances.

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