Q.Write a short note on: Subscription.

A subscription is the recurring fee paid by members to a club or society for membership. It is the chief income of a not-for-profit organisation and is taken to the Income and Expenditure Account for the current year only, adjusting for outstanding and advance subscriptions.

This is a standard AP Inter 2nd-year (Commerce) not-for-profit question, aligned with the NCERT/CBSE commerce curriculum.

Members of clubs, societies and associations pay a subscription — usually yearly — to continue as members. It is the principal and most regular source of revenue for such organisations. While the Receipts and Payments Account records the cash actually received, the Income and Expenditure Account must show only the subscription relating to the current year. Therefore:

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