A club received 32000 in subscription during the year. At the year end subscription of 350 were owed by members and 450 had been paid in advance for the next year. How much was transferred to the income and expenditure account for subscription

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A club received 32000 in subscription during the year. At the year end subscription of 350 were owed by members and 450 had been paid in advance for the next year. How much was transferred to the income and expenditure account for subscription

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As per accrual concept of accounting, all incomes and expenses of the business related to a particular period should be recorded in that period only. Any revenue received in advance should not be recorded in this period.

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