What is subscription?
How is it calculated?
What is subscription? How is it calculated?
Subscription is the main source of income for an NPO besides
entrance fees, donations, grants, etc. Subscriptions refer to the amount of
money paid by the members on periodic basis for keeping their membership with
the organisation alive. It is paid monthly,
quarterly, half yearly or annually by the members.
It is shown in the debit side of the Receipt and Payment
Account with the total amount received during the year that may be related to
the current period and to the previous and next accounting period.
While calculating subscription for the current period,
advance subscription received for the current period in the previous period and
outstanding subscription for the current period are added to the subscription
received during the current period. Whereas, on the other hand, advance
subscription received for the next accounting period during the current period
and outstanding subscription for the preceding period are deducted from the
subscription received during the current period.
Calculation of Subscription
Subscription received
during the year
***
Add: Subscription
received (in advance) during previous year for current year
***
Add: Subscription
outstanding at the end of the year
***
***
Less: Subscription
received in advance for the next year
***
Less: Subscription
outstanding for the previous year
***
***
## Subscription shown in
Income and Expenditure Account
***
## This subscription is related to the current accounting
period and is shown in the Income side of the Income and Expenditure Account.
Subscription is the main source of income for an NPO besides entrance fees, donations, grants, etc. Subscriptions refer to the amount of money paid by the members on periodic basis for keeping their membership with the organisation alive. It is paid monthly, quarterly, half yearly or annually by the members.
It is shown in the debit side of the Receipt and Payment Account with the total amount received during the year that may be related to the current period and to the previous and next accounting period.
While calculating subscription for the current period, advance subscription received for the current period in the previous period and outstanding subscription for the current period are added to the subscription received during the current period. Whereas, on the other hand, advance subscription received for the next accounting period during the current period and outstanding subscription for the preceding period are deducted from the subscription received during the current period.
Calculation of Subscription
|
Subscription received during the year |
|
*** |
|
Add: Subscription received (in advance) during previous year for current year |
*** |
|
|
Add: Subscription outstanding at the end of the year |
*** |
|
|
|
|
*** |
|
Less: Subscription received in advance for the next year |
*** |
|
|
Less: Subscription outstanding for the previous year |
*** |
*** |
|
## Subscription shown in Income and Expenditure Account |
|
*** |
## This subscription is related to the current accounting period and is shown in the Income side of the Income and Expenditure Account.
