JAMB Principles of Accounts 2006 Question 41

Question 41

Not-for-Profit Organisations

Given:
Subscriptions received ₦200 000
Subscriptions owed ₦10 000
Subscriptions in advance ₦25 000
Calculate the subscriptions in the income and expenditure account.

  1. A.₦200 000
  2. B.₦235 000
  3. C.₦185 000
  4. D.₦225 000.
Show the answer and explanation

Answer: C (₦185 000)

Explanation

Add subscriptions owed for the year and remove those paid in advance for next year: 200 000 + 10 000 − 25 000 = ₦185 000.