Admission form fees

This query is : Resolved

Mayuri Nikunj Variava (Querist)
Follow

28 December 2013 Dear Sir,
I m working in school as an auditor & accountant. School is running by trust.
I want to ask you that income of admission form fees of next financial year treated as income for which year. Income for current financial year or advance admission form fees(current liab.) in current year and than admission fees (indirect income) in next financial year.Please help me out.

Nikhil Kaushik

Nikhil Kaushik (Expert)
Follow

28 December 2013 should depend on the accounting principles followed by the organization.

If you are following cash accounting, the income shall be recognized in the year it is received. If you are following accrual basis, then advance received should be treated as current liability (as you rightly said) and treated as income in the next year.

However, with respect to receipt from admission forms, I believe you should for the same in the current year itself because:

1. The receipt from admission is generally not refundable or adjustable.

2. It has no relation to the classes run by the school in next year.

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

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

ASIM ATREY AND ASSOCIATES

CA Garima Bhatia

SHIBSANKAR DEY

RAHUL SURANA

CA.Pinank Arvindbhai Shah

Subscribe Now

Admission form fees

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA