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JAMB Principles of Accounts 2001 Question 29

Question 29

Not-for-Profit Organisations

Use the information below to answer questions 28 and 29.
(₦)
Subscriptions received during the year 30,000
Subscriptions owed last year 4,000
Subscriptions received for next year 6,000
What is the subscription to be charged to income and expenditure account?

  1. A.₦36,000
  2. B.₦34,000
  3. C.₦30,000
  4. D.₦20,000
Show the answer and explanation

Answer: D (₦20,000)

Explanation

30,000 − 4,000 (for last year) − 6,000 (for next year) = ₦20,000 for this year.