Question

Outstanding subscription is shown in:

• A. Balance Sheet
• B. Income & Expenditure A/c
• C. Both (A) and (B)
• D. None of these

Hint:

Outstanding incomes = add in Income & Expenditure A/c + show as asset in Balance Sheet.

Answer 1

The Correct Option is C

Step 1: Treatment in Income & Expenditure A/c.
Outstanding subscription (income accrued but not yet received) is added to subscription received during the year in the Income & Expenditure A/c, because accounts are prepared on accrual basis.
Step 2: Treatment in Balance Sheet.
It is also shown as an asset in the Balance Sheet under “Current Assets” since it is receivable.
Step 3: Conclude.
Thus, outstanding subscription appears in both Income & Expenditure A/c and Balance Sheet.
Final Answer: \[ \boxed{\text{Both (A) and (B)}} \]