Question

Entrance fee is treated as:

• A. Capital Receipt
• B. Revenue Receipt
• C. Donation
• D. Subscription

Hint:

Entrance fee = one-time → Capital Receipt. Recurring items (subscriptions) = Revenue Receipts.

Answer 1

The Correct Option is A

Step 1: Nature of entrance fee.
Entrance fee (also called Admission fee) is paid by members only once, at the time of joining a club or organisation.
Step 2: Reasoning.
Since it is a one-time payment, it is not recurring. Therefore, it is considered a capital receipt, as it adds to the capital fund.
Step 3: Conclude.
Thus, entrance fee is treated as a capital receipt.
Final Answer: \[ \boxed{\text{Capital Receipt}} \]