MNR Company is a non-governmental organization that gives charity to orphans in Ontario. The members of the Trust make subscriptions to fund the organization. There are ten members who are required to make subscriptions of $140,500 each per annum. All subscriptions for the year 2020 were received. Three members contributed a total of $240,640 in excess for that year. They agreed that the excess subscriptions can be carried forward to the following year.

Required:

1. What is the accounting name given to these excess subscriptions?
2. Shall the excess subscriptions be recorded as assets or liabilities of Big Trust? Explain.
3. Provide the end of the year accounting treatment for the excess subscriptions as they would appear in:
4. • The income statement
   • The statement of financial position

Answer rating: 100% (QA)

What is the accounting name given to these excess subscriptions They are subscriptions received in a... View the full answer