Subscriptions received in cash during the year 5 000 amount received in advance for the next year is...........

General Accounting Principles Not for profit organisation

Subscriptions received in cash during the year ` 5,000, amount received in advance for the next year is ` 300. Amount outstanding for current year was ` 400. The amount to be credited to the Income and Expenditure Account is—

4,000

5,100

4,200

4,600

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Explanation:

- You received ` 5,000 in subscriptions during the year.

- Out of this, ` 300 is for next year. So, it's not part of this year's income.

- You have ` 400 outstanding for the current year that you should consider as income.

- To calculate the amount for the Income and Expenditure Account, subtract the advance (` 300) from the total received (` 5,000) and add the outstanding amount (` 400).

\(\text{5,000} - \text{300} + \text{400} = \text{5,100}\)

- Option 2: 5,100 is the correct answer.