Read the following information and answer the question.

ABC Welfare Club has provided the following information on 31st March 2021.
Subscription received by the firm during the year ₹6,20,000. Details of which is as follows:
For the year 31st March 2020 30,000
For the year 31st March 2021 90%
For the year 31st March 2022 50,000
Amount of subscription in arrears as at 31st March 2020 was ₹45,000 out of which 20% was not receivable and to be written off.

What amount of Subscription in advance is to be shown on the liabilities side of the Balance Sheet on 31st March 2021?

₹50,000

The correct answer is option 1- ₹50,000.

On the liability side of the balance sheet the amount received in advance by the organisation is shown. Here, the amount received in advance by the organisation is ₹50,000.