Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Accounting for Not-for-Profit Organisation. This page offers a step-by-step solution to the specific question from Exercise 3, Question 6:
What is subscription? How is it calculated?
. With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.What is subscription? How is it calculated?
Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such organisations.
For example, a club received Rs. 20,000 as subscriptions during the year 2016-17 of which Rs.3,000 relate to year 2015-16 and Rs.2,000 to 2017-18, and at the end of the year 2016-17 Rs.6,000 are still receivable.
In this case, the Receipt and Payment Account will show Rs.20,000 as receipt from subscriptions. But the Income and Expenditure Account will show Rs. 21,000 as income from subscriptions for the year 2016-17, the calculation of which is given as below:
Subscriptions received in 2016-17 20,000
Less: Subscriptions for the year 2015-16 3,000
17,000
Less: Subscription for the year 2017-18 2,000
15,000
Add: Subscriptions outstanding for the year 2016-17 6,000
Income from subscriptions for the year 2016-17 21,000
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Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 3 , Question 6: What is subscription? How is it calculated?....
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