Back to Course

SS2: FINANCIAL ACCOUNTING - 2ND TERM

0% Complete
0/0 Steps



  • Do you like this content?

  • Follow us

Lesson Progress
0% Complete

1. Donations

2. Subscriptions/ Dues

3. Entrance fees

4. Fines

5. Profits from bar

6. Interest from Investments

7. Income from raffle draws, animal fees, dinners etc.

Subscription

This is the periodic contribution of members to the association or society. Members are enjoined to pay their subscriptions as at when due and it can be paid monthly or quarterly. Subscription can be paid by members in advance or in arrears.

(a) Subscription in arrears: This is a sum of money due from members for a particular year but which has not been paid for that year. It is treated as a current asset in the final account.

(b) Subscription in advance: This is a sum of money prepaid by the members of club representing their dues for next year. It is treated as a liability in the balance sheet.

NB: A separate account can be prepared for subscription to adjust the arrears and advance before being posted to the credit of income and expenditure account. 

Responses

Your email address will not be published. Required fields are marked *

back-to-top
error: