Question

Write one Word / Term / Phrase for each of the following statement.

The fees paid by a person, who wants to become a member of the concern, for his whole life.

Answer 1

Life Membership Fees

Explanation: In order to become the member of an organisation for life, some members pay fees in lump sum (i.e. a single large payment). Such fees are known as life membership fees. It is non-recurring in nature, i.e. a capital income. Therefore, it is not credited to Income and Expenditure Account; rather, it is added to the capital fund appearing on the Liabilities side of the Balance Sheet.