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

Sunrise Sports Club received subscriptions of Rs 2,40,000 during 2024-25. Subscriptions outstanding were Rs 20,000 at the start and Rs 30,000 at the end of the year. Subscriptions received in advance were Rs 10,000 at the start and Rs 15,000 at the end. What amount of subscription is credited to the Income and Expenditure Account?

The subscription income for the year is Rs 2,45,000. Add closing outstanding and opening advance to receipts, and deduct opening outstanding and closing advance: 2,40,000 + 30,000 - 20,000 + 10,000 - 15,000 equals 2,45,000.

  1. ARs 2,45,000Correct
  2. BRs 2,55,000
  3. CRs 2,35,000
  4. DRs 2,40,000

Explanation

Start with receipts 2,40,000. Add closing outstanding 30,000 and less opening outstanding 20,000 gives 2,50,000. Less closing advance 15,000 and add opening advance 10,000 gives 2,45,000. Ignoring the advance adjustments would give 2,50,000, and applying them with the wrong sign would give 2,55,000 or 2,35,000 variants.

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