alleryStart learning →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)_
Keep practising Accounts of Not-for-Profit Organisation
Browse all Accounts of Not-for-Profit Organisation questions for Tamil Nadu HSC (Class 12), or explore more Accountancy topics.
Related questions
A club's assets total Rs 1,30,000 and its liabilities, being subscription in advance Rs 5,How is a bank overdraft at the beginning of the year entered in the receipts and payments In the balance sheet of a not-for-profit organisation, a surplus for the year is:When a club sells old furniture, what enters the income and expenditure account?Honorarium paid to a person who is not a regular employee is:The purchase of sports materials such as balls and nets is treated as:The capital fund of a not-for-profit organisation is also called the:Interest earned on prize fund investments should be: