Subscription Received in Advance is a :

The correct answer is Option (1) → Liability

Subscription received in advance is money received for a future year. The organisation still owes the member the services of that year, so the amount is shown on the liabilities side of the Balance Sheet and excluded from this year’s income.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.