5. Entrance Fees/ Admission Fees
Entrance fees/ admission fees refers to the amount paid by a member for his admission. These are the fees collected from new members are the time of his admission into membership which is usually charged by a club or society or by any non-profit making organization. It is treated as revenue receipt since it is collected every year and shown on the credit side of income and expenditure account. However, the students are advised to treat as capital receipts in the presence of specific instructions given in problem.
6. Honorarium
Honorarium denotes the remuneration to be paid to the outsider (not an employee) for their specific services like delivering speech, lectures, showing stage performance and concert etc. It is accounted as revenue expenditure and shown on the debit side of income and expenditure account.
7. Grants
Grants are the financial assistance received from public, government, other organizations and countries. It may be received for specific or general purposes. Therefore, general grants are treated as revenue receipts and shown on the credit side of income and expenditure account. However, specific grants must be treated as capital receipts which is shown on the liability side of balance sheet.
Entrance fees/ admission fees refers to the amount paid by a member for his admission. These are the fees collected from new members are the time of his admission into membership which is usually charged by a club or society or by any non-profit making organization. It is treated as revenue receipt since it is collected every year and shown on the credit side of income and expenditure account. However, the students are advised to treat as capital receipts in the presence of specific instructions given in problem.
6. Honorarium
Honorarium denotes the remuneration to be paid to the outsider (not an employee) for their specific services like delivering speech, lectures, showing stage performance and concert etc. It is accounted as revenue expenditure and shown on the debit side of income and expenditure account.
7. Grants
Grants are the financial assistance received from public, government, other organizations and countries. It may be received for specific or general purposes. Therefore, general grants are treated as revenue receipts and shown on the credit side of income and expenditure account. However, specific grants must be treated as capital receipts which is shown on the liability side of balance sheet.
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