Concept:Subscriptions received in advance are an obligation, not income.
Explanation:When a subscription is received in advance, the organisation has received cash but has not yet provided the corresponding service or membership period.
As per the accrual concept, income is recognised only for the period to which it relates.
Therefore, an advance subscription cannot be credited fully to the income and expenditure account.
It must be carried forward to the next accounting period.
Since the organisation is liable to provide the service in the future, the advance amount is treated as a liability.
As it is expected to be adjusted within one year, it is classified as a current liability.
Hence, it appears on the liabilities side of the Balance Sheet, not as income.
Answer:Option D — Subscriptions received in advance are shown in the Balance Sheet as a current liability.