Question 30
Not-for-Profit OrganisationsThe following information relates to a hockey club:
Subscription owing at the beginning ₦40
Subscription owing at the end ₦35
Subscription received in advance at the beginning ₦15
Subscription received during the period ₦2 560
The amount to be shown in the income and expenditure account would be
- A.₦2 500
- B.₦2 540
- C.₦2 570
- D.₦2 590.
Show the answer and explanation
Answer: C (₦2 570)
Explanation
Income = cash received 2 560 − arrears at start 40 (belongs to last year) + arrears at end 35 + advance at start 15 (now earned) = ₦2 570.