Day: January 8, 2023

What is the normal treatment of life membership subscriptions?

Select ONE answer:

1. credit the income and expenditure account in the year of receipt
2. credit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure account
3. debit the income and expenditure account in the year of receipt
4. debit the life membership fund with the year’s receipts and transfer a proportion each year to the income and expenditure account

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct
3. Not correct
4. Not correct

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