Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 34)

What would be the impact on the Income and Expenditure account for a club, if subscriptions in arrears were written off during the year?

Increase surplus

Reduce surplus

Increase expenditure

Have no effect

Explanation

Writing off arrears does not effect surplus, because the income and expenditure are on an accruals basis. The expense occurs in the current financial position.

Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 15 - No. 34)

Explanation

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