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Outstanding Subscription
Example XYZ Club has 1200 members each paying a monthly subscription of 100. As on 31st March, the Subscription due (or) outstanding subscription amounted to 25,000. Journalise the following transactions for subscriptions due and received in the books of XYZ Club.
In the books of XYZ Club
| Date | Particulars | L.F. | Amount | Nature of Account | Accounting Rule |
| 31st March | Outstanding Subscription a/c Dr | 25,000 | Representative Personal | Debit– The Receiver | |
| To Subscription a/c | 25,000 | Nominal | Credit– All Incomes and Gains |
(Being Subscription due as on 31st March)
| Date | Particulars | L.F. | Amount | Nature of Account | Accounting Rule |
| 1st April | Cash/Bank a/c Dr | 25,000 | Real | Debit– What comes into the business | |
| To Outstanding Subscription a/c | 25,000 | Representative Personal | Credit– The Giver |
(Being Subscription received)
Accounting Treatment
Outstanding subscription is treated as an asset to the organization and shown on the asset side of the balance sheet. It is added to the subscription and recorded on the Income side of the Income and Expenditure account. It is also termed as Subscription in areas (or) Subscription due.
Modern Accounting Approach
We will record the same transaction by following the modern rules of accounting.
In the books of XYZ Club
| Date | Particulars | L.F. | Amount | Nature of Account | Accounting Rule |
| 31st March | Outstanding Subscription a/c Dr | 25,000 | Asset | Debit– The Increase in Asset | |
| To Subscription a/c | 25,000 | Income | Credit– The Increase in Income |
(Being Subscription due as on 31st March)
| Date | Particulars | L.F. | Amount | Nature of Account | Accounting Rule |
| 1st April | Cash/Bank a/c Dr | 25,000 | Asset | Debit– The Increase in Asset | |
| To Outstanding Subscription a/c | 25,000 | Asset | Credit– The Decrease in Asset |
(Being Subscription received)
