Maharashtra State BoardHSC Commerce 12th Board Exam
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Subscription received in advance during the accounting year is _______. - Book Keeping and Accountancy

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MCQ
Fill in the Blanks

Subscription received in advance during the accounting year is _______.

Options

  • An income

  • An expenditure
  • An asset

  • A liability

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Solution

Subscription received in advance during the accounting year is a liability.

Explanation:

Subscription income which is not related to the current year but received during the year is known as income received in advance. It is also known as unearned income and therefore, these are shown on the Liabilities side of the Balance Sheet.
Concept: Income and Expenditure Account
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APPEARS IN

Balbharati Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board
Chapter 2 Accounts of ‘Not for Profit’ Concerns
Exercise 2 (Objective Type Questions) | Q 1. A) 5. | Page 112
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