CIMA BA3 · Chapter 11 · Question 7 of 12
A club received subscriptions of $14,600 during the year. At the start of the year subscriptions in arrears were $300 and subscriptions in advance were $450. At the end of the year subscriptions in arrears were $200 and subscriptions in advance were $700. All arrears are expected to be collected. What is the subscriptions income for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) $14,250
Explanation
Subscriptions income = cash received - opening arrears (last year's income) + opening advance (this year's income received last year) + closing arrears - closing advance = $14,600 - $300 + $450 + $200 - $700 = $14,250.
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