Question

Entrance fees, unless otherwise stated, is treated as​

Answer 1

Answer:

REVENUE RECEIPTS IS THE CORRECT ANSWER.

Answer 2

Treatment of Entrance fees in the Account of Not for Profit Organisation

Explanation:

Entrance fees or the admission fees is given by the new member when he joins the NPO. Some people says that entrance fees must be capitialised as it is non recurring in nature. However some people argue that it should be treated as revenue income.

Unless otherwise stated, it should be treated as revenue receipt and should be shown on the credit side of the income and expenditure account.