What is subscription? How is it calculat | Class 12 Accountancy Chapter Accounting for Not-for-Profit Organisation, Accounting for Not-for-Profit Organisation NCERT Solutions

Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter Accounting for Not-for-Profit Organisation. This page offers a step-by-step solution to the specific question from Exercise 3, Question 6:

What is subscription? How is it calculated?

. With detailed answers and explanations for each chapter, students can strengthen their understanding and prepare confidently for exams. Ideal for CBSE and other board students, this resource will simplify your study experience.

Question 6:

What is subscription? How is it calculated?

Answer:

Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such organisations.

For example, a club received Rs. 20,000 as subscriptions during the year 2016-17 of which Rs.3,000 relate to year 2015-16 and Rs.2,000 to 2017-18, and at the end of the year 2016-17 Rs.6,000 are still receivable.

In this case, the Receipt and Payment Account will show Rs.20,000 as receipt from subscriptions. But the Income and Expenditure Account will show Rs. 21,000 as income from subscriptions for the year 2016-17, the calculation of which is given as below:

Subscriptions received in 2016-17                                  20,000
Less: Subscriptions for the year 2015-16                         3,000
                                                                                        17,000
Less: Subscription for the year 2017-18                           2,000
                                                                                        15,000
Add: Subscriptions outstanding for the year 2016-17       6,000
Income from subscriptions for the year 2016-17             21,000

Study Tips for Answering NCERT Questions:

NCERT questions are designed to test your understanding of the concepts and theories discussed in the chapter. Here are some tips to help you answer NCERT questions effectively:

  • Read the question carefully and focus on the core concept being asked.
  • Reference examples and data from the chapter when answering questions about Accounting for Not-for-Profit Organisation.
  • Review previous year question papers to get an idea of how such questions may be framed in exams.
  • Practice answering questions within the time limit to improve your speed and accuracy.
  • Discuss your answers with your teachers or peers to get feedback and improve your understanding.

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Comments

  • Keerthi
  • Jan 10, 2019

Understandable

  • Ravi Rauahan
  • Aug 14, 2018

Differentiate between receipts and payments accounts and income and expenditure account

  • Ravi Raushan
  • Aug 14, 2018

What is capital fund? How it is calculated?

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Welcome to the NCERT Solutions for Class 12 Accountancy - Chapter . This page offers a step-by-step solution to the specific question from Excercise 3 , Question 6: What is subscription? How is it calculated?....

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