Calculate the subscriptions in the Income and expenditure account

Use the information to answer this question
Receipts and Payment Account (Extract)
                               N
Bal b/f                   3650       Insurance   900
subscription   (99) 7500       Rate          11,700
                   (2000) 1000      Bal c/d        8,050
Fees                      8500

                            20,650                       20,650

The following information were given:

Rates owing
Insurance prepaid
Subscription in arrears

 1/199
3,600
50
700		 31/12/99
2000
1000
600

Calculate the subscriptions in the Income and expenditure account

  • A.
    8400
  • B.
    7400
  • C.
    6400
  • D.
    7200
Correct Answer: Option B
Explanation
Subscription account
Dr                            Cr
Bal b/f             700 cash   (99)       7500
J $ K               7400           (2000)    1000
Bal c/d            1000 Bal c/d              600
                      9,100                         9100

 

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