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<p><strong>a) Revenue receipts</strong><strong>b) Capital receipts</strong><strong>c) Assets</strong><strong>d) Special receipts</strong></p>
A
A
Its Revenue Receipt but unearned
Generally, the members are required to make the payment in a lump sum only once which enables them to become the members for whole of the life. Life members are not required to pay the annual membership fees. As 'life membership fees' is a substitute for 'annual membership fees', therefore, it is desirable that life membership fees should be credited to a separate fund and fair proportion be credited to income in subsequent years.
Unless there is a specific decision by the Club to what proportion be treated as income then whole of it should be treated as capital receipt.
A
The correct answer is A
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