Accountancy Part AAccounts for Non Profit Organsiation

The item that is not recorded in the Income and Expenditure account i…

The item that is not recorded in the Income and Expenditure account is :

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Subscription for the previous year received in current year

The Income and Expenditure Account shows only the subscription of the current year, whether received or not. Arrears of the previous year belong to that year.

Option (1) Subscription received for current year — Incorrect. It is current-year income, so it is recorded.

Option (3) Subscription for the current year received in previous year — Incorrect. It was an advance last year and is income of this year.

Option (4) Subscription outstanding for current year not received — Incorrect. Outstanding current-year subscription is added as 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.

NCERT (Pre-rationalised edition):
Some Peculiar Items – “… 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.”

NCERT (Pre-rationalised edition):
Some Peculiar Items

Extract from the NCERT textbook