Question
Subscriptions owing is usually treated as an asset of the organisation. However, experienced treasurers will tell you that subscriptions owing for a long time are
Subscriptions owing is usually treated as an asset of the organisation. However, experienced treasurers will tell you that subscriptions owing for a long time are usually never paid. A lot of clubs do not therefore bring in unpaid subscriptions as an asset in the statement of financial position. a) State and explain which accounting concept is at play when subscriptions owing are excluded from the statement of financial position. b) In an examination, how are you, as a student, expected to treat subscriptions owing, and what is the exception to the general rule? c) A Club collects annual subscriptions of K20 from each member. It is club policy to accrue subscriptions owing at the end of each year and also to adjust for subscriptions received in advance. It is also club policy not to accept part-payments of subscriptions from any member.
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