Revenue Recognition in a Club / Member busines

Dear Saiyum

The revenue will be recogized as and when amount for membership fees becomes due as the same is receiveble as per the terms of contract

Following will be the accounting entry as per my opinion: (answer is according to your example)

when amount becomes receivable 

Party A/c Dr                                   (For booking the income)

   to Membership Fees A/c

Bank A/c Dr.                                 (when amount is received)

   to Party A/c

Above entry will be passed at all stages ie when amount of Rs 1 lac is received and at the end of each of the 24 months....

Thanks Anvesh

Will It be wrong if  following entry is passed

At the time of Admission of Members

Party A/c Debit  Rs.500000

    To Member ship Income  Rs.500000

At the time of receipt of Down Payment

Bank / CAsh Dr.  Rs.100000

   To Party A/c   Rs. 100000

At time of receipt of each EMI

Bank / CAsh  Dr.

   To Party A/c