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Entrance fees as per club bye-laws are treated as:
ACapital receipt always
BRevenue receipt always
CIncome tax adjustment item (typical)
DSometimes capital, sometimes revenue
Answer & Solution
Correct answer: D. Sometimes capital, sometimes revenue
1. If bye-laws treat entrance fees as one-time admission charge, it's capital in nature.
2. If recurring/normal, it's revenue and credited to I&E.
3. Accounting practice follows the entity's stated policy.
_Source: ICAI BoS Foundation Paper 1, Ch 8 "NPO", §3.1 ¶2_
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