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Question
Subscription received by an organisation is a
Subscription received by an organisation is a
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Solution
The correct option is A revenue receipt
The subscription amounts are treated as revenue receipts as they are realised from recurring items of a non-profit organisation. Subscription received from members is credited to Income and Expenditure Account on accrual basis i.e. total amount receivable from all the members as subscription should be considered as income for the year.
The subscription amounts are treated as revenue receipts as they are realised from recurring items of a non-profit organisation. Subscription received from members is credited to Income and Expenditure Account on accrual basis i.e. total amount receivable from all the members as subscription should be considered as income for the year.
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