Subscription in advance is treated in the Balance sheet of non-profit making organizations as
Answer Details
Subscription in advance is treated as a current liability in the Balance sheet of non-profit making organizations. This is because the organization has received the payment for the subscription in advance but the services or benefits will be provided in the future. Therefore, it is a liability that the organization owes to its members until the services or benefits are provided. Once the services or benefits are provided, the subscription in advance will be transferred to the revenue side of the Income and Expenditure account as income.