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Life Membership Fee

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Accounting for Clubs and Societies

MS: Yuran Seumur Hidup · EN: Life Membership Fee · ZH: 终身会员费

Meaning

A life membership fee is a lump-sum payment that lets a person be a member for life without paying annual subscriptions. Because the benefit is received over the long term, the amount is usually capitalised into the Accumulated Fund or spread gradually to the Income and Expenditure Account.

Example

For example, Mr Rahman pays a life membership fee of RM1,000 to Damai Fishermen's Club. This amount is added to the Accumulated Fund so that it is not treated as the income of a single year.

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5

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