Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 23 - No. 17)
In a club, subscriptions in arrears at the start of the year $2,000. During the year, the club collected $25,000 of subscriptions, and at the end of the year, subscriptions in arrears were $1,000. What is the subscription income shown in the income and expenditure account?
$24,000.
$26,000.
$27,000.
$28,000.
Explanation
The amount is calculated as subscriptions received + subscriptions in arrears (closing) - subscriptions in arrears (opening).
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