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When cash is received for life membership, which one of the following double entries is passed? 
  • a)
    Life membership debit and cash credit
  • b)
    Cash debit and capital credit
  • c)
    Investment debit and cash credit
  • d)
    Cash Debit and life membership fund credit
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
When cash is received for lifemembership, which one of the following d...
Correct Answer :- d
Explanation : Some organisations provide its members an option to pay a lump sum amount to become members for the whole life. The members opting for the life membership are not required to pay a periodic subscription. As this is received only once it is transferred to the Capital fund Account in Balance Sheet. As cash is received, the cash account is debited and it is a liability, so capital/ General fund is credited.
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Most Upvoted Answer
When cash is received for lifemembership, which one of the following d...
Correct Answer :- d
Explanation : Some organisations provide its members an option to pay a lump sum amount to become members for the whole life. The members opting for the life membership are not required to pay a periodic subscription. As this is received only once it is transferred to the Capital fund Account in Balance Sheet. As cash is received, the cash account is debited and it is a liability, so capital/ General fund is credited.
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Community Answer
When cash is received for lifemembership, which one of the following d...
Correct Answer :- d
Explanation : Some organisations provide its members an option to pay a lump sum amount to become members for the whole life. The members opting for the life membership are not required to pay a periodic subscription. As this is received only once it is transferred to the Capital fund Account in Balance Sheet. As cash is received, the cash account is debited and it is a liability, so capital/ General fund is credited.
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When cash is received for lifemembership, which one of the following double entries is passed?a)Life membership debit and cash creditb)Cash debit and capital creditc)Investment debit and cash creditd)Cash Debit and life membership fund creditCorrect answer is option 'D'. Can you explain this answer?
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