Question

How to find outstanding subscription if outstanding of previous year and advance given at end of the current year and advance given in end of previous year are given

Answer 1

Answer:

Add outstanding on previous year, less advance on current year and add advance on previous year

Answer 2

The principal source of income for a NPO is subscription. It is the amount of cash paid by members on a quarterly basis to keep their membership alive.

• Managed subscriptions obtained for the present term and subsequent year, and unpaid subscriptions are typically added to the same period subscriptions when determining the same for present term.
• Whereas, advance payment received during current period for the next accounting period and pending payment for previous period are excluded from the direct payment received in current period.

Calculation -

Subscription received during the year

+ Outstanding Subscription at year end  

+ Advance subscription during previous year

For current year

- Previous year outstanding subscription.

- Advance subscription for the next year