Question

5. The amount of 'Subscription received from members' by a Non-profit organi sation is
shown in which of the following?
(a)Debit side of Income and Expenditure Account (b)Credit side of Income and
Expenditure Account(C)Liability side of Balance Sheet
(d) Assets side of Balance Sheet
6. Credit side balance in Income & Expenditure Account reveals​

Answer 1

Answer:

option(b) credit side of income and expenditure A/c.

Explanation:

Subscription received from members is an income. Whenever we record any income in the books of accounts, it should be credited.

Answer 2

Option B is correct i.e. Credit side of income and expenditure account.

• Income and Expenditure is a account which is prepared by the non profit organisation.
• Motive of them is for helping people.
• In income and expenditure account we write all the expenses on the debit hand side and all the income on the credit hand side .
• In this account income and expenses of the current year are recorded.

Credit balance in income and expenditure account reveals deficit which means that income are less and expenditures are more.