passwella.
Menu

JAMB Principles of Accounts 2001 Question 28

Question 28

Not-for-Profit Organisations

Use the information below to answer questions 28 and 29.
(₦)
Subscriptions received during the year 30,000
Subscriptions owed last year 4,000
Subscriptions received for next year 6,000
The ₦6,000 subscription received is

  1. A.current asset
  2. B.current liability
  3. C.fixed asset
  4. D.capital.
Show the answer and explanation

Answer: B (current liability)

Explanation

Subscriptions paid in advance are owed to members as future benefits, so they are a current liability.