Match List-I with List II

Choose the correct answer from the options given below :

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

The correct answer is option 2- A-II, B-III, C-IV, D-I.

* Subscription- Receipt side of Receipt and Payment A/c of NPO. Not for Profit Organizations often receive subscriptions from their members. Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such organisations. Subscription paid by the members is shown as receipt in the Receipt and Payment Account and as income in the Income and Expenditure Account.

* Prepaid Expense- Assets side of balance sheet of NPO. Prepaid expenses represent payments made in advance for goods or services that will be received in the future. They are treated as asset in the balance sheet.

* Honorarium- Payment side of Receipt and Payment A/c of NPO. Honorarium is the amount paid to the person who is not the regular employee of the institution. Payment to an artist for giving performance at the club is an example of honorarium. This payment of honorarium is shown on the expenditure side of the Income and Expenditure Account and payment side of receipt and payment account.

* Life Membership fees- Liabilities side of Balance Sheet of NPO (Not for profit Organisation). Some members prefer to pay lump sum amount as life membership fee instead of paying periodic subscription. Such amount is treated as capital receipt and credited or added directly to the capital/general fund in the balance sheet.