Financial Statements of Not-for-Profit OrganisationsQ-4 | Not-for-Profit OrganisationsQuestion 5127 of 44
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Membership fees

Options

A
B
C
D
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Correct Answer

✅ Option — Correct Option

All Options:

  • A
  • B
  • C
  • D

Detailed Solution & Explanation

Membership fees:  These are usually charged yearly from the members hence are treated as revenue income and credited to I&E A/c.  The amount received should be duly adjusted for outstanding and advances, so as to get the figure of income for the year.  When number of members and the rate of membership fees/subscription is given then income = number of member x rate per member.  Outstanding subscription i.e. subscription receivable will be shown on the asset side of balance sheet.  Advance subscription i.e. unearned subscription will be shown on the liability side of balance sheet.

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