Question 32
Not-for-Profit OrganisationsGiven:
Subscription in arrears 01/01/06 ₦2 000
Subscription in advance 01/01/06 ₦1 500
Subscription paid during the year ₦7 000
Subscription in arrears 31/12/06 ₦3 000
Determine the amount of subscription included in the income and expenditure account for the year
- A.N 3500
- B.N 7000
- C.N 9500
- D.N13 500
Show the answer and explanation
Answer: C (N 9500)
Explanation
Income = cash received 7 000 − opening arrears 2 000 + opening advance 1 500 + closing arrears 3 000 = ₦9 500.