Menu
Accounting for income from Gym
Hi....Plz let me know can we change the accounting policy of a Gym from accrual to receipt basis claiming that the membership fee received are not refunded to the members later & hence it is the income of current year eventhough the membership is for more than 1 year.
Replies (1)
If the yearly income over expenditure is above Rs 1,20,000/- , it is compulsory for organisation to maintain accounts on mercantile basis not on cash basis.
So, the Accounting Policy for gym is must be on mercantile basis.
The income which is part of Membership fees must be treated as revenue and must not be capitalised.....
Recent Topic
- ITR-3 Filling issues
- PF withdrawal and tax liability
- Sale of Goods or Services?
- ITR form query
- Credit against paud RCM on rent
- Dividend difference in 26AS, AIS, TIS
- 194JB INCOME
- Filing ITR3 where income under section 44AD with L
- What is superannuation fund
- GST Refund of input services under Inverted Duty S
Related Topics
CAclubindia
