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ivanzaharov [21]
3 years ago
6

(D)

Business
1 answer:
Slav-nsk [51]3 years ago
3 0

Answer:

(D)  Capital receipt

Explanation:

The life membership fee is a one-time lump sum amount paid by a new member. It gives a member access to the club facilities for the rest of their lives. Life membership is treated as a capital receipt and added to the capital fund. It appears on the liabilities side in the balance sheet.

Life membership is not treated as income for a particular year because the one-time payments permit a member lifetime access to the club services.

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Answer:

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Answer:

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