- Messages
- 2,824
- Reaction score
- 3,730
- Points
- 273
Yes I know it is a current liabilityBecause the members have paid the money for the next year or whatsoever, so it's like a liability to the club owners since it's like you owe the members a service, which they have not yet realized. They come under Current Liabilities in the Balance Sheet.
When you draw up a subscriptions account, any subscriptions paid in advance are carried down as a credit balance to the following period.
Hope you get it
I meant why not add there
You explained about the subscription account..
In income statement, the subscriptions prepaid at the end of the year are subtracted from subscriptions paid during the year (In expenses) , right?, So I guess when calculating correct net surplus, it should be subtracted.. I mean we subtract expenses from Gross profit, so (-)expenses (-)prepaid = (+) to Gross profit, so in the reverse(Calculating corrected net surplus) we add Is that right?
Thanks
Sorry I am having a struggle when it comes to accounting, I get confused for merely no reason..