(i) Annual subscription :
• Actual subscription received during an accounting year are shown on debit side of receipts and payment a/c.
• Later subscription transfered to income and expenditure account to the extent of current year amount. Such transfer shown on credit side of inc.ome and expenditure a/c
• Subscription received, which is related to previous year should deducted from balance sheet assets side amount shown.
• Subscription received for next year should be shown an balance sheet liabilities side as received in advance.
• Subscription due but not received should be added to subscription received on income and expenditure a/c credit side and the same to be shown on assets side of the balance sheet under‘Receivables or amount due but not received’.
(ii) Specific donation – The fund received for specific purpose From the donors called special funds or special donation.
The accounting treatment of special donation:-
• Amount received as specific donation should be shown on receipts side or debit side of receipts and
• Specific donation capital receipts in its nature so it should be shown on balance sheet liability side.
• Any payment made for that specific purpose to that extent should deduct from balance of amount shown in previous year balance sheet.
• Any amount received during the year should added to previous year balance amount.
(iii) Sale of fixed assets – The assets in the business should be sale for many reasons. In case of such sales doing the year, the accounting treatment is as follows.
• Sale of assets is the receipt such receipt should be shown on debit side of receipt and payment a/c.
• Sale of assets receipt is a capital receipt. The book value should be deducted from the existing assets balance.
• In case of any loss on sale of fixed assets should be debited to income and expenditure account. Any profit on sale of fixed assets. Shown on credit side of income and expenditure a/c.
(iv) Sale of old periodicals
• The-receipt out of sale of newspaper and periodicals should be shown oh debit side of receipt and payment a/c
• Sale of newspaper and periodicals is the revenue, it should be transfer to income and expenditure a/c credit side as income.
(v) Sale of sports materials – Sale of sports materials dr items are’ capital receipts. The accounting treatment is as treatment of sale of fixed assets. Sports materials is a part of fixed assets.
(vi) Life membership fee:
• The person normally paid fees to the organization foe the intention to become life member of the organization. It is the revenue of the organization, shown an debit side of receipt and payment a/c.
• Life membership fees is the capital receipt in its nature. These fees amount are added to the capital fund on the liability side of the balance sheet.
