Case Study Information:Pragya Madan, an ex-Indian hockey player, decided to start a hockey academy named "Bright Hockey Academy" on 1st April 2022 to train young girls.Her neighbor, Ishwar, died and willed his land to start the academy.Her father, Ramkumar, spent ₹20,00,000 for the construction of a pavilion.100 young girls joined the academy and paid an annual subscription of ₹1,000 each.10 members paid a single amount of ₹25,000 each to obtain life membership.Hockey sticks and balls purchased during the year amounted to ₹27,000. Closing stock of these items is nil.Question: The amount of recurring subscription revenue credited to the Income and Expenditure Account during the year will be:
- A₹1,00,000
- B₹1,25,000
- C₹90,000
- D₹1,15,000
Solution & Step-by-step Explanation
The annual recurring subscription revenue belongs to the 100 regular training girls who pay yearly fees.
This is credited as revenue income. (Life membership fees are capitalized separately).
This is credited as revenue income. (Life membership fees are capitalized separately).