Home › Tamil Nadu HSC (Class 12) › accountancy › Accounts of Not-for-Profit Organisation › Subscription outstanding for the current year ap…
Subscription outstanding for the current year appears in the balance sheet as:
AA liability, under the capital fund
BAn asset of the organisation
CA deduction from the capital fund
DAn item shown only as a note
Answer & Solution
Correct answer: B. An asset of the organisation
1. Subscription outstanding is income earned for the year but not yet received in cash.
2. The amount is still recoverable from members, so it is something the organisation owns.
3. The textbook states that subscriptions outstanding for the current year, and any still outstanding for the previous year, are shown on the assets side.
4. Subscription received in advance is the mirror item and is shown on the liabilities side.
5. In the income and expenditure account, outstanding subscription for the current year is added to the subscription received.
_Source: TN HSC Class 12 Accountancy (Samacheer Kalvi, Govt of Tamil Nadu), Unit 2 "Accounts of Not-for-Profit Organisation", §2.5.4(a)_
Related questions
Which item would appear in the receipts and payments account but NOT in the income and expIn this textbook's balance sheets, legacies and life membership fees are:A club has 400 members each paying Rs 150 a year. Subscription outstanding for the currentA match fund stood at Rs 30,000. Receipts for the match fund during the year were Rs 22,50A club's assets total Rs 1,30,000 and its liabilities, being subscription in advance Rs 5,Prize fund stood at Rs 60,000. During the year interest on prize fund investments was Rs 6Opening stock of sports materials was Rs 3,000, purchases during the year Rs 9,000 and cloA club has 300 members each paying Rs 200 a year. Subscription received for the current ye