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

Subscription for the previous year received in current year

The correct answer is option 2- Subscription for the previous year received in current year.

The Income and Expenditure account records income and expenses for the current accounting period. Subscription received for the current year is recorded in the Income and Expenditure account because it represents income received during the current accounting period. Subscription outstanding for the current year not received is also recorded because it represent accrued income. Subscription for the current year received in previous year is also recorded as it is advance received in the previous year for the current year.

However, subscription for the previous year received in the current year (Option B) is not recorded in the Income and Expenditure account because it represents income received in the current period but belongs to previous year. It is deducted from the subscription on the credit side of income and expenditure account.