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Outstanding Subscription
Example- XYZ Club has 1200 members each paying a monthly subscription of 100. As on 31st March, Subscription due (or) outstanding subscription amounted to 25,000. Journalise the following transactions for subscription due and received in the books of XYZ Club.
In the books of XYZ Club
(Being Subscription due as on 31st March)
(Being Subscription received)
Accounting Treatment
Oustanding subscription is treated as an asset to the organization and shown in the asset side of the balance sheet. It is added to the subscription and recorded on the Income side of 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
(Being Subscription due as on 31st March)
(Being Subscription received)