Subscription received in advance is treated as

1. Subscription received but not yet earned represents an obligation to render service in future. 2. It is shown as a liability in the Balance Sheet, not as income of the current period. 3. When the service period arrives, it is transferred to Income & Expenditure as income. 4. Hence (C) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 2 "Accounts of 'Not for Profit' Concerns", §2.2 ¶§2.2_