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+--- Thread: am i right? (/thread-am-i-right)
am i right? - darenatto - 04-27-2007
will soemone plz tell me Is this the right solution to this question.i just want to verify my answer.
Qthe M club discloses the following note to its income and expeenditure account
"subscriptions in arrears r accounted for when received;subscriptions in advance r accounted for on a matching basis."at 31 march 2001, there were subscriptions owing of $1000 n subscriptions in advance of $500.during the year ended 31 march 2002,subscriptions of $10,000 were received,including subscriptions relating to the previous year of $800 and subscriptions in advance of $600.
what amount should be included for subscriptions in the year ended 31 march 2002?
my answer
subscriptions received on 31 march 2002=$10,000
less
subscription in advance of 2001=$500
subscription in advance 0f 2002=$600
subscription on 31 march 2002=$8900