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Out of the following items, which is shown in the ‘Receipts and Payments A/c’ of a not for profit organisation?
Subscription received in advance
Last year subscription received
Current year subscription received
All of the above
- Subscription received in advance: This is recorded when money is received for the next period, not for the current period. It counts as a receipt in the Receipts and Payments Account.
- Last year subscription received: Payments received for previous periods are recorded in this account as receipts. It’s essentially money received this year, regardless of when it was due.
- Current year subscription received: This is the most straightforward. It's money collected in the current period, clearly shown in the Receipts and Payments Account.
- All of the above: This option correctly includes all types of subscription receipts that would appear in the account.
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