Accrual adjustment for subscriptions income Steps:

• Cash received for the year: $1200.
• Add opening subscriptions in advance (30 April 2018): $1300, as these relate to the current year.
• Add closing subscriptions in arrears (30 April 2019): $1100, as these are earned but unpaid.
• Subtract opening subscriptions in arrears (30 April 2018): $800, as these relate to the prior year.
• Subtract closing subscriptions in advance (30 April 2019): $0 (not provided, assume none).
• Total subscriptions income: 1200 + 1300 + 1100 - 800 - 0 = $2800.

Why D is correct:

• D ($2800) applies the standard accrual formula for non-profit income: cash + opening advance + closing arrears - opening arrears - closing advance.

Why the others are wrong:

• A ($1200) uses cash basis only, ignoring accrual adjustments.
• B ($1500) adds net arrears change to cash but omits advance adjustment.
• C ($2500) includes cash and opening advance but neglects arrears adjustment.

Final answer: D