Tag: Income Received In Advance

The following items appear in the subscriptions account for the Milford skittles club for a financial year.

• subscriptions that were received which were owed from the previous year – £3,000
• subscriptions paid in advance for next year – £1,000
• subscriptions income transferred to the income and expenditure account – £50,000
• subscriptions outstanding from members at the year-end – £2,000

How much cash was actually received from the members in the financial year?

Select ONE answer:

1. £46,000
2. £50,000
3. £52,000
4. £56,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – £50K + £3k – £2K + £1k
4. Not correct

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