Following is the information relating to a club for the year ending 31.03.2022: Subscription outstanding as on 31.03.2021: Rs. 16,000 Subscription received in advance as on 31.03.2022 Rs. 18,000 Subscription received in advance as on 31.03.2021 Rs. 12,000 Subscription received in advance as on 31.03.2022 Rs. 11,000 There are 70 members each paying an annual subscription of Rs. 1,000. Total subscription received during the year 2021 – 22 will be:
- ARs. 67,000
- BRs. 71,000
- CRs. 69,000
- DRs. 77,000
Explanation
Annual subscription income is 70 members x Rs. 1,000 = Rs. 70,000. Using the subscription account equation: subscription received (X) - outstanding at the beginning (Rs. 16,000) + outstanding at the end (Rs. 18,000) + advance at the beginning (Rs. 12,000) - advance at the end (Rs. 11,000) = Rs. 70,000. Solving gives X = Rs. 67,000, option (a).