allerySubscription received during year includes ₹4,000 for next year. I&E should include:
AFull amount received
BNone of the items received
COnly opening outstanding
DNet of advance subscription
Answer & Solution
Correct answer: D. Net of advance subscription
1. Subscriptions received in advance pertain to a future period.
2. They are excluded from current year's I&E.
3. Shown as a liability on Balance Sheet at year end.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.3 working_
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