accounting for life membership fees

This query is : Resolved 

16 July 2009

plz advice me on accounting for lifemembership fees received by trust for publication published by that trust.
some times trust received annual subscription also.

how can i recognised income of that trust

Guest (Expert) 18 July 2009

If Annual subscription - treat as prepaid expenses as in B/s and t/f the periodically segregate amount in P & L A/c, like Annual subs fees is 120000 for period May'09 to May'10 so in that case 120000/12 = 10000, but you should be t/f in P & L a/c 10000 x 11= 1,10,000 in P&L and 10000 will be shows in B/s as under prepaid expenses and if life time fees thn treat as capital expenses and if amount is less than 10000, treat as revenue.

You need to be the querist or approved CAclub expert to take part in this query .

Click here to login now

Similar Resolved Queries :

× Online Coaching My Enrolled Courses
Articles Forum News Experts Exams Share Files Income Tax Accounts Career Corporate Law Service Tax Video Judgements Rewards Top Members Events Albums Find Friends Featured Feed Scorecard Bookmarks Mock Test Poll Notification Knowledge Finder Coaching Institutes Trainee Corner Jobs
close x
Download GST App    |    x