(A) Treatment in income and expenditure account: 

When subscription received for the current year, previous years and subsequent period are given separately, subscription received for the current year will be shown on the credit side of income and expenditure account after making the adjustments given below:

•  Subscription outstanding for the current year is to be added. 

•  Subscription received in advance in the previous year which is meant for the current year is to be added.

When total subscription received in current year is given:

•  Subscription outstanding in the previous year which is received in the current year will be subtracted. 

•  Subscription received in advance in the previous year which is meant for the current year is added and subscription received in advance must be subtracted.

(B) Treatment in Balance sheet:

•  Subscription outstanding for the current year and still outstanding for the previous year will be shown on the asset side of the Balance sheet. 

•  Subscriptions received in advance in the current year will be shown on the liabilities side of the Balance sheet.