Subscription received in advance during the current year is :

The correct answer is Option (3) → A Liability

Subscription received in advance is money received this year for a future year. It is not income of the current year; the organisation owes the members a service for it, so it is shown on the liabilities side of the Balance Sheet.

Option (1) An Income — Incorrect. Only the subscription relating to the current year is income; the advance part is excluded from the Income and Expenditure Account.

Option (2) An Asset — Incorrect. Outstanding (receivable) subscription is the asset, not subscription received in advance.

Option (4) An Expense — Incorrect. It is a receipt, not an expense.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), and it is also out of the CUET 2026 syllabus.