Q.Accrued subscriptions received in current year will be treated as

Accrued/outstanding subscription is income earned but not yet received, i.e. an amount receivable, which is an asset. The answer is (b).

In Not-for-Profit Organisation accounts, subscription income for the year is the amount earned, whether received or not. The portion earned but still to be collected is accrued (outstanding) subscription — a receivable, hence an asset shown in the Balance Sheet.

• (a) Liability — wrong; a liability would be subscription received in advance. …

Outstanding subscription is income earned but not yet collected, i.e. a receivable, which is an asset. The answer is (a).

In Not-for-Profit Organisation accounts, subscription income for a year is the amount earned. The part that is due but not yet received is outstanding subscription — shown as an asset in the Balance Sheet and added to subscription income in the Income & Expenditure Account.

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