Subscription is a membership fee paid by the member on annual basis. This is the main source of income of such organizations. Subscription paid by the members is shown as receipt in the Receipt and Payment Account and as income in the Income and Expenditure Account. 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.
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For example, a club received Rs. 20,000 as subscriptions during the year 2005-06 of which Rs.3, 000 relate to year 2004- 05 and Rs.2, 000 to 2006-07, and at the end of the year 2005-06 Rs.6, 000 are still receivable. In this case, the Receipt and Payment Account will show Rs.20, 000 as receipt from subscriptions. But the Income and Expenditure Account will show Rs. 21,000 as income from subscriptions for the year 2005-06.