How does a non profit organization deal with outstanding subscriptions?

The subscription amounts are treated as revenue receipts. Subscription received from members is credited to Income and Expenditure Account on accrual basis i.e. total amount receivable from all the members as subscription should be considered as income for the year.

What is the treatment of 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.

How will Subscription received for governors Party be shown in the final accounts of a not for profit Organisation?

Answer: it will go in balance sheet of NPO in liability side with special subscription.

What is subscription for governor’s party?

Subscription for the governor’s party is an income of Specific nature, hence it is a capital nature item and must be shown in the Balance Sheet.

What is the treatment of legacy in NPO?

See legacy is the amount received by an NPO against will of a person. If person specified the purpose for which his legacy should be used. Then it is treated as Specific legacy and recorded as capital receipts and the liabilities side of Balance Sheet.

Is outstanding subscription a nominal account?

Answer. Nominal account is an account which is related and associated to losses, expenses, income and gain. But Outstanding salary is a personal account because it relates to actual persons. As the salary is due but not yet paid, so it doesn’t come under nominal account.

What is the meaning of subscription outstanding?

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

Is outstanding subscription income?

Outstanding subscription is Assets.

What is legacy and its treatment?

Legacy is generally shown on the debit side of receipts and payments accounts. Legacy is the property received by virtue of a will of a person or after his death. Its a capital receipt and hence would not appear in income and expenditure account and will be added to the capital in Balance sheet.

What is accounting treatment of specific fund?

The amount of the special subscription is credited to the special fund that is recorded as a liability in the balance sheet. Any expenses out of these funds will be deducted from the special fund in the balance sheet.

Why are adjustments for outstanding and prepaid expenses not recorded in receipts and payments account?

Because receipts and payment accounts record all cash receipts and cash payments, it is a consolidated cash book. It does not take into consideration outstanding amounts of receipts and payments.