Accountancy, asked by navneetbeniwal2411, 8 months ago

Still outstanding subscription of previous year is added in current years subscription amount true or false​

Answers

Answered by bhavanibhavs040
1

Answer:

true

Explanation:

(a) Any Subscriptions which are being received during an accounting year are shown on the debit side of the Receipts and Payments Account.

(b) On the other hand Subscription amounts related to the current accounting year only, whether received or yet to be received are shown on the credit side of the income and Expenditure Account by making adjustment if required for outstanding and advance.

(c) Besides deducting the amount of advance subscriptions from subscriptions received the amount of advance received subscription for the subsequent year are shown on the Liabilities side of the Balance Sheet.

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