Cima C02 Exam Question No 28

Question No 28:

The following information at 5 January year 3 relates to a club, which has a year end of 31 December year 2:
                                                                                                                                       $
Subscriptions for year 1 unpaid at January year 2                                                   300
Subscriptions for year 1 paid during the year ended 31 December year 2             250
Subscriptions for year 2 paid during the year ended 31 December year 2             6,000
Subscriptions for year 3 paid during the year ended 31 December year 2             1,000
Subscriptions for year 2 unpaid at 31 December year 2                                          750

It is the club’s policy to write off overdue subscriptions after one year.

What amount should be credited to the income and expenditure account for 31 December year 2?

A. $6,250
B. $6,750
C. $7,050
D. $7,250

Answer: B