Question

How is Entrance Fees dealt with while preparing the final accounts for the year ended 31st March, 2019 in each of the following alternative cases?
Case I    During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.
Case II    During the year ended 31st March, 2019, Entrance Fees received was ₹ 1,00,000.Out of this, ₹ 25,000 was received from individuals whose membership is not yet approved.

Answer 1

Case 1

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
			Entrance Fees	1,00,000

 Case 2

Income and Expenditure Account for the year ended March 31, 2019
Dr.					Cr.
Expenditure		Amount (₹)	Income	Amount (₹)
			Entrance Fees	75,000
			(1,00,000 – 25,000)