Please answer this question of NPO
Solution:-
Under Debit side of Receipt and Payment account, the amount actually received are recorded:-
BALANCE SHEET (Extract)
Under Debit side of Receipt and Payment account, the amount actually received are recorded:-
| Annual Subscription (1500 x 100) | 150,000 |
| less: Not received subscription (40 x 100) | (4000) |
| Add: Advance received (25 x 100) | 2500 |
| Receipt and Payment account | 148500 |
BALANCE SHEET (Extract)
| Liabilities | Amount | Assets | Amount |
| Advance Subscriptions (25 x 100) |
2,500 | Outstanding Subscriptions (40 x 100) | 4,000 |
| Outstanding Subscription of Previous year (Note: Assumed not received this year) |
10,000 |