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JAMB Principles of Accounts 2014 Question 31

Question 31

Not-for-Profit Organisations

Social Club Subscription (Extract)
31/12/2009 Subscription accrued ₦18,900
Subscription received in advance ₦16,400
Subscription received during the year 2009 ₦38,570
What is the amount of subscription to be shown as liability in the balance sheet as at December 2009?

  1. A.₦14,200.
  2. B.₦16,400.
  3. C.₦18,900.
  4. D.₦20,500.
Show the answer and explanation

Answer: B (₦16,400.)

Explanation

Subscriptions received in advance (₦16 400) are owed to members as next year's service, so they are a liability.