Maharashtra State BoardHSC Commerce 12th Board Exam
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Select the Most Appropriate Answer from the Alternatives Given Below and Rewrite the Sentence. - Book Keeping and Accountancy

MCQ

Select the most appropriate answer from the alternatives given below and rewrite the sentence.
‘Outstanding subscription’ at the end of Accounting year represents _____________.

Options

  • a liability

  • an expenditure

  • an asset

  • a capital fund

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Solution

‘Outstanding subscription’ at the end of Accounting year represents an asset.

Explanation: Subscriptions are the main source of income for an NPO. Outstanding subscription represents amount receivable on account of subscriptions. Such outstanding income at year-end is an asset and, therefore, shown on the Assets side of the Closing Balance Sheet (being closing balance of subscription).

Concept: Additional Information - Opening Balances of Assets and Liabilities
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APPEARS IN

Micheal Vaz Accounts - Book Keeping and Accountancy HSC 12th Standard Maharashtra State Board
Chapter 7 Accounts of 'Not For Profit' Concerns
Exercise | Q 3 | Page 227
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