Why is subscription outstanding an asset?

It is that amount of Subscription which due in Previous year and not received in Previous Year. Therefore, It is deducted while ascertaining Subscription received during the Current Year and on the Other hand, it is shown on the Assets side of Opening Balance Sheet. Thanks !!!

How is outstanding subscription shown in the Balance Sheet?

Outstanding Subscription is shown on the Assets side of the Balance Sheet.

Are subscriptions Assets or liabilities?

In the case of subscription revenue, you have a liability to provide the publication, membership rights, or other items or services to which your customer has subscribed. Therefore, when you receive the revenue, you must reflect both the receipt of funds and the liability to your customer on your financial statements.

Is subscription is an asset?

Outstanding subscription is Assets.

What does outstanding subscription mean?

Outstanding subscription is the amount of subscription which is due in the previous year and not received in the previous year.

Is subscription due a current asset?

Current accounts receivable assets represent money owed to a company for delivered goods or services. These accounts, also known as “on-credit accounts,” are cash equivalents that customers have not yet paid for. Examples include: Subscription services.

What is outstanding subscription?

How do I record subscriptions?

In theory, the payment in advance for a one-year subscription should initially be recorded as a debit to Prepaid Expenses and a credit to Cash. During the subscription period, you would debit Subscription Expense and would credit Prepaid Expenses.

How do you record subscriptions in accounting?

What is closing outstanding subscription?

Outstanding Subscription at the End: It is that sum money which is due in Current year and yet not received. It is related to Current Year, therefore, it is added to the Subscription received during the Year and on the Other hand, shown on the Assets side Closing Balance sheet.

How would a non profit Organisation deal with outstanding subscription?

1. A)Outstanding Subscription Of that year is recorded on debit side of Income and Expenditure A/c and also shown in the Balance Sheet of Current year in the Assets Side.
2. B)There are two cases:
3. C) Tournament Fund will be treated in the liability side of Balance Sheet according to its Adjustments.

Which type of account is outstanding subscription?

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.