Analyzing club subscriptions ledger account Steps:

• Identify the ledger as the subscriptions account, with balance b/d $20,000 as opening arrears (debit).
• Note Dec 31 bank entry $24,000 as cash received from members (credit to subscriptions).
• Observe income and expenditure entry $24,000 as subscriptions earned for the year (debit).
• Balance c/d $3,000 as closing adjustment (credit, e.g., prepaid or reduced arrears), with totals equaling receipts and adjustments.

Why B is correct:

• In non-profit accounting, the bank entry in the subscriptions ledger directly records cash inflows from members for the year, amounting to $24,000 per the account.

Why the others are wrong:

• A: Opening balance b/d is $20,000 (likely arrears, not prepaid); no evidence of$2,000 prepaid.

Final answer: B