accounting for life membership fees

This query is : Resolved

shital (Querist)
Follow

16 July 2009 plz advice me on accounting for lifemembership fees received by trust for publication published by that trust.
some times trust received annual subscription also.

how can i recognised income of that trust

Guest

Guest (Expert)

18 July 2009 If Annual subscription - treat as prepaid expenses as in B/s and t/f the periodically segregate amount in P & L A/c, like Annual subs fees is 120000 for period May'09 to May'10 so in that case 120000/12 = 10000, but you should be t/f in P & L a/c 10000 x 11= 1,10,000 in P&L and 10000 will be shows in B/s as under prepaid expenses and if life time fees thn treat as capital expenses and if amount is less than 10000, treat as revenue.