Question

Notes on subscribtion in income and expenditure accounts

Answer 1

Ans-- Sunscription is the amount received,by the organisation monthly, QUARTLY and annually from members of a club or society.

It is the one of the most important revenue income of non- trading organisation. It is shown in the debit side of the receipt and payment account with the total amount received during the current year that may be related to current and previous and next accounting period.


In other words Sunscription refers to the amount of money paid by the members on periodic basis for keeping their membership with the organisation.

The income and expenditure records only the subscription related to the particular accounting period whether received or receivable. The total subscription relating to a particular accounting period, is recorded on the credit side of income and expenditure account. Any subscription outstanding and received in advance at the end of year are shown at the assets side and liabilities side of the balance sheet