Q.There are 300 members in a club each paying ₹ 100 as annual subscription. Subscription due but not received for the Current Year is ₹ 200. Subscription received in advance is ₹ 300. Find out the amount of subscription to be shown in the Income and Expenditure account.

Legacy = amount received under a will, non-recurring → capital receipt. Option (c).

In the accounts of a not-for-profit organisation, a legacy is a gift of money or property left to the organisation by a deceased person through a will.

• It is non-recurring and does not arise from the regular activities of the organisation, so it is a capital receipt and is normally added to the Capital Fund in the Balance Sheet. …

The subscription to be shown in the Income and Expenditure Account is ₹ 50,000.

The Income and Expenditure Account of a club records the subscription earned for the current year on an accrual basis (Accounts of Not-for-Profit Organisation, TN HSC Commerce).

Annual subscription due for the year = 500 members × ₹ 100 = ₹ 50,000.

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Sale of old sports materials is a revenue receipt, so pairing it with "capital receipt" is wrong.

In the TN HSC Class-12 Accountancy syllabus (Accounts of Not-for-Profit Organisation), receipts are split into capital and revenue:

• (a) Sale of old sports materials — Capital receipt: Incorrect. Old sports materials are consumable items already treated as expense/revenue nature; their sale is a small, recurring receipt and is treated as a revenue receipt, credited to the Income & Expenditure A/c.
• (b) General donation — Revenue receipt: correct (a general, small donation not for a specific purpose is revenue income). …

Subscription due but not received for the current year is an asset (outstanding subscription) — option (b).

Under the accrual basis, the whole subscription earned for the current year is credited to the Income and Expenditure Account, whether collected or not. The portion that has been earned but is still to be received is called outstanding (accrued) subscription. Because the organisation has a right to receive this money, it is a current asset shown on the assets side of the Balance Sheet.

…

Subscription for the Income and Expenditure account = 300 members × ₹100 = ₹30,000 (the amount earned for the current year).

The Income and Expenditure account follows the accrual concept — it records the subscription earned for the current year, regardless of when cash is received.

• Amount due for the year = 300 members × ₹100 = ₹30,000.
• The ₹200 due but not received is part of this ₹30,000 (it belongs to the current year, just not yet collected), so no separate addition is needed. …

Audit fees, electricity charges and telephone charges are all revenue expenditure, but life membership fees is a capital receipt — so option (c) is the odd one out.

In the Accounts of Not-for-Profit Organisation topic of the TN HSC Commerce syllabus, items are classified as revenue or capital:

• Audit fees — a recurring expense → revenue expenditure (debited to Income and Expenditure A/c).
• Electricity charges — a recurring running expense → revenue expenditure.
• Telephone charges — a recurring running expense → revenue expenditure.
• Life membership fees — a lump sum paid once by a member for lifelong membership; it is a capital receipt added to the Capital Fund (or treated per instructions), not an expense. …

A donation received for a specific purpose is a capital receipt.

In the Tamil Nadu HSC Class-12 Accountancy syllabus, donations to a not-for-profit organisation are of two kinds:

• General donation of a small/recurring amount → treated as revenue receipt, credited to the Income and Expenditure Account. …

Subscription for the year = 500 members × ₹100 = ₹50,000, so option (b) is correct.

In the Income and Expenditure Account we show the subscription earned for the current year, not the cash actually received. When every one of the 500 members pays an annual subscription of ₹100, the amount earned for the year is fixed:

500 × ₹100 = ₹50,000.

The extra data given are distractors here, because the ₹50,000 already represents the full year's income for all 500 members:

• Subscription due but not received (₹200) is part of this ₹50,000 (income earned, cash still to come). …