A member of a club paid N1,000 as is subscription for 1993 and N1,200 as subscription for 1992. If the financial year of the society ended on 31st December 1993, the N1,200 subscription will be treated in the balance sheet as
current asset
current liability
capital
profit
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Discussions (5)
sorri dear it corect.bcos u made a payment of 100 at previous year nd 1200 on d followin year bt unfortunatley d financial year of d society ended in d previous year as@1993 den it wil b treated as subscription in advance since it has nt yet b recorded nd demanded,nd accordin 2 accounting principle subscription in advance is always treated as current liability while in arrears is current asset as a debtor.hop i v clearified ur confusion
Subscription in Arrears/previous years is recorded as current Assets in the balance sheet while subscription in advance is recorded as curren liability
The answer is option because any accrued that member receive is has been income member therefore its income arrear and income arrear its item of current asset
pls i disagree on dis opt B z nt d ans b/c in d past yr 1992 d amt of 1200 was due on d memba bt remain unpaid till 1993, so d 1200 z suscription in arears which z curent aset: opt A thanks.
