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Read the following information and answer the questions that follow: VIJAYA SHANKAR, an Ex-Indian cricketer decided to start a cricket academy to train the young enthusiastic players of down south. With the support and guidance of his family he started the Star cricket academy at Tirunelveli township area on 1st April, 2020.


Land was donated by his grandfather worth ₹ 10,00,000 as per his will for cricket coaching. His father Shankar donated ₹ 5,00,000 for the construction and running of the academy. He spent ₹ 3,00,000 for construction of the pavilion. 200 players of Tirunelveli joined the academy and they paid a yearly subscription of ₹ 1200 each. 10 players paid in advance for the next year 2021-22. Vijaya Shankar appointed a well experienced coach for them, the coach fee amounted to ₹ 1,20,000 p.a. The maintenance expenses amounted to ₹ 75,000. Bats and balls purchased during the year amounted to ₹ 15,000. Closing stock of bats and balls amounts to ₹ 1000.


Q. The amount of subscription to be credited to income and expenditure account

  • a)
    ₹2,40,000

  • b)
    ₹1,40,000

  • c)
    ₹2,00,000

  • d)
    ₹3,00,000

Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Read the following information and answer the questions that follow: V...
Calculation of amount of subscription to be credited to income and expenditure account:

Step 1: Calculate total subscription income:
- Total number of players = 200
- Yearly subscription per player = ₹1200
- Total subscription income = 200 players * ₹1200 = ₹2,40,000

Step 2: Adjust for advance payments:
- 10 players paid in advance for the next year
- Advance subscription per player = ₹1200
- Advance subscription for 10 players = 10 players * ₹1200 = ₹12,000
- Subscription income for the current year = Total subscription income - Advance subscription = ₹2,40,000 - ₹12,000 = ₹2,28,000
Therefore, the amount of subscription to be credited to the income and expenditure account is ₹2,28,000.
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Community Answer
Read the following information and answer the questions that follow: V...
Amount of subscription to be credited to Income and Expenditure Account


= ₹ 2 00 × ₹ 1200


= ₹ 2,40,000
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