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WAEC Financial Accounting 2019 Question 50

Question 50

Not-for-Profit Organisations

Subscription owing $6,000 (31/12/2014); Subscription in advance $4,000 (31/12/2014); Cash received as subscription during the year was $80,000. The subscription for the year 2014 was

  1. A.$90,000
  2. B.$82,000.
  3. C.$78,000.
  4. D.$70,000.
Show the answer and explanation

Answer: B ($82,000.)

Explanation

Income = cash 80,000 + owing at year end 6,000 − received in advance for next year 4,000 = $82,000.