Use the information to answer this question
Receipts and Payment Account (Extract)
N
Bal b/f 3650 Insurance 900
subscription (99) 7500 Rate 11,700
(2000) 1000 Bal c/d 8,050
Fees 8500
20,650 20,650
The following information were given:
Rates owing Insurance prepaid Subscription in arrears |
1/199 3,600 50 700 |
31/12/99 2000 1000 600 |
The figure ₦1000 represent what in the balance sheet.
The ₦1000 represent liability in the balance sheet, since it is paid by the members representing dues for next year. Subscription in advance are liabilities, because the company that received the money has not yet earned it and it has an obligation (a liability) to deliver the related goods or services in the future.
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