Match List-I with List-II.

Choose the correct answer from the options given below:

(A)-(III), (B)-(IV), (C)-(I), (D)-(II)

The correct answer is Option (4) → (A)-(III), (B)-(IV), (C)-(I), (D)-(II).

(A) Subscription- (III) Main source of income of Not for Profit organisations.
Subscription is a membership fee paid by the member on annual basis. This is the main source of income of not for profit orgnisations. Subscription paid by the members is shown as receipt in the Receipt and Payment Account and as income in the Income and Expenditure Account. It may be noted that Receipt and Payment Account shows the total amount of subscription actually received during the year while the amount shown in Income and Expenditure Account is confined to the figure related to the current period only irrespective of the fact whether it has been received or not.

(B) Endowment Fund- (IV) Fund arising from a bequest or gift.
Endowment Fund is a fund arising from a bequest or gift, the income of which is devoted for a specific purpose. Hence, it is a capital receipt and shown on the Liabilities side of the Balance Sheet as an item of a specific purpose fund.

(C) Cash subsidy received from the government- (I) Revenue income for the year in which it is received.
When a cash subsidy is received from the government, it is important to determine whether it is a revenue income or capital income. If the cash subsidy is received for revenue purposes (i.e., to support operational activities or cover expenses), it would generally be treated as revenue income for the year in which it is received.

(D) Legacies- (II) Amount received as per the will of the deceased person.
Legacies is the amount received as per the will of a deceased person who may or may not specify the use of the amount. Legacies, use of which is specified are specific legacy and is shown in the balance sheet as liability. If the use is not specified it is considered as revenue nature and credited to income and expenditure account.