Back to Questions
SSC Financial and Cost Accounting P-1 QUESTION #9642
Question 1
A non-profit organization received subscription of Rs. 55,000 during the year. Opening subscription due = Rs. 5,000; Opening subscription received in advance = Rs. 3,000; Closing subscription due = Rs. 4,000; Closing subscription received in advance = Rs. 2,000. What is the subscription income for the year?
  • Rs. 55,000
  • Rs. 59,000
  • Rs. 57,000✔️
  • Rs. 53,000
Correct Answer Explanation
Subscription income = Cash received – Opening due – Closing advance + Closing due + Opening advance = 55,000 – 5,000 – 2,000 + 4,000 + 3,000 = Rs. 55,000. Correction: 55,000 – 5,000 + 4,000 + 3,000 – 2,000 = Rs. 55,000. The book formula: Cash received – Opening due + Closing due + Opening advance – Closing advance = 55,000 – 5,000 + 4,000 + 3,000 – 2,000 = Rs. 55,000. This equals option 1. For Rs. 57,000 the figures differ. Correct answer using the standard formula: 55,000 + 4,000 + 3,000 – 5,000 – 2,000 = 55,000. Answer is option 0 (Rs. 55,000). Note: This is a challenging scenario as students often mis-add adjustments.