subscription received during the year N30,000. Subscription owed last year N4,000. subscription received for next year N6,000.
use the details above to answer the following question.
what is the subscription to be charged to income and expenditure account?
- N20,000
- N30,000
- N34,000
-
N36,000
The correct answer is: D
Explanation
An income and expenditure account is a record showing debits and credits for an organization within a particular time period. Income and expenditure accounts are also referred to as profit and loss accounts. Generally, these accounts are credited with debits and credits, whether paid or not.
the subscription to be charged to income and expenditure account = subscription for the year N30,000 + N6,000 subscrition for next year. ie, N36,000