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Subscriptions outstanding at beginning ₹1,600; received during year ₹42,000; outstanding at end ₹3,000. Cash collected from current year subs:
A₹42,000 cash received
B₹39,000 of running figure
C₹40,400 net of opening O/S
D₹43,000 grand total
Answer & Solution
Correct answer: C. ₹40,400 net of opening O/S
1. Cash received ₹42,000 includes ₹1,600 for last year's outstanding.
2. Current year cash = 42,000 − 1,600 = ₹40,400.
3. Plus outstanding ₹3,000 for current year (not yet received).
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", Illustration 2 working_
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