Membership fees treatment

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My boss has got membership in cloth merchant association of india & He has paid Rs. 117000 as a life time membership so how to give treatment of it. Whether it is considered as a revenue expense & capital expense?? Can we claim depreciation on it?
Replies (4)

it is business expense and should show in debit side of profit and lost a/c

thanks samir sir for replying...its life time membership so how can we claim in single financial year. Please elobrate it more

Non-refundable  membership deposit should be shown as an intangible asset and amortised over the period of membership. In the case of corporate life membership, amortisation may exceed 10 years as there is persuasive evidence that benefits would flow even beyond that period. However, it would be prudent and conservative not to extend their life beyond 10 years for the purpose of amortization considering AS 26.

Sir,
if we receive membership fees for 25 years and giving free facility like GYM,Sports activites and one time free banquet for member.

how to make entries in tally.
and nature of trreatment?


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