Skip to content

CMA Intermediate · Financial Accounting · Financial Statements of Not-for-Profit Organisations

Sunrise Sports Club's Receipts and Payments Account for 2025-26 shows subscriptions received Rs 3,60,000. 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 is the subscription income credited to the Income and Expenditure Account?

Subscription income is Rs 3,65,000. Start with cash received 3,60,000, deduct opening dues 20,000, add closing dues 30,000, add opening advance 10,000 (now earned) and deduct closing advance 15,000 (belongs to next year).

  1. ARs 3,65,000Correct
  2. BRs 3,55,000
  3. CRs 3,75,000
  4. DRs 3,45,000

Explanation

Income = Received 3,60,000 - opening outstanding 20,000 + closing outstanding 30,000 - opening advance 10,000 + closing advance 15,000 = 3,75,000? Check: 3,60,000-20,000=3,40,000; +30,000=3,70,000; advance: opening advance relates to this year so +10,000 = 3,80,000; closing advance relates to next year so -15,000 = 3,65,000. Rs 3,75,000 wrongly treats the advance adjustments with reversed signs.

Did you get it right without looking?

One question tells you little. A timed set on Financial Statements of Not-for-Profit Organisations shows your real accuracy, how long you take and where you lose marks.

Practise Financial Statements of Not-for-Profit OrganisationsFree diagnostic mock

More Financial Statements of Not-for-Profit Organisations questions