WAEC - Accounts Principles Of Accounts (2010 - No. 19)

Subscriptions received in advance are
included in the income and expenditure account
not included in the receipts and payment account
shown as a current asset in the balance sheet
shown in the Balance Sheet as a current liability

Explanation

An amount received in advance against which the services are yet to provide is a balance sheet item. Any advance subscription is a liability and to be shown in balance sheet

Comments (0)

Advertisement