NPO LEC 02 Part 4_6 Joining Fee and Life Time Membership fee
Transcript
00:00Let's move on to the next heading, which is Joining Fee.
00:08Joining Fee.
00:12And this is...
00:16Who is he?
00:19Who is he?
00:21Where is he?
00:23When will he come?
00:25100 Rupees.
00:26How much? 100 Rupees or not?
00:29Why are you slapping me? 100 Rupees or not?
00:33Don't slap me.
00:35How much? 100 Rupees.
00:38Okay.
00:40Joining Fee and Lifetime Membership Fee.
00:53You have to look at the question.
00:55What does he say?
00:57If he says, make it an income
01:02in the year of joining,
01:06then you can make an income that year.
01:09But if he says,
01:11Lifetime Membership Fee or
01:12Membership Fee,
01:14Joining Fee,
01:15you have to make it an income
01:16over 3 years,
01:17over 5 years,
01:18over 10 years,
01:19then make it on the same duration.
01:22If he tells you the question,
01:23that so many members come every year,
01:26who give Lifetime Membership,
01:28then they enjoy the benefit for about 10 years
01:31of Lifetime Membership Fee.
01:32Based on past experience,
01:34based on past experience,
01:36the expectation of the future is that
01:38they keep taking the benefit for about 10 years.
01:40Then you will make it an income
01:42over 10 years.
01:43What does the question say?
01:45If the question says,
01:47Joining Fee or Lifetime Membership Fee,
01:50you have to make it an income
01:51in the year of receipt.
01:52Then you will make it an income for 20 years.
01:53And if he says,
01:55it seems that we have 8-10 years,
01:57and we have to make it an income
01:58in 10 years.
01:59So whatever the Joining Fee will be,
02:01then we will divide it by 10,
02:03and every year,
02:04we will make it an income.
02:05So it is possible that
02:06you can make it an income
02:07in the year of joining,
02:09or
02:10over years mentioned
02:16in the question.
02:19Over the years mentioned
02:21in the question.
02:24Okay, friends.
02:25If in the year of joining,
02:27if you are making it an income,
02:28then what will be the entry?
02:29Debit Cash.
02:31And what will be the credit?
02:34Credit will be an income.
02:35Expenditure account.
02:36You will make it a foreign income.
02:38But if it is over the years,
02:40then what will be the entry at the time of receipt?
02:43Debit Cash will be the entry at the time of receipt.
02:46Credit Deferred Income.
02:48Because it is related to whom?
02:50Related to the future.
02:53And at the end of every year.
02:55At every year end.
02:59And when the year will end,
03:01then what will be the entry at the end of every year?
03:04Deferred Income Debit.
03:06And what will be the credit?
03:08Friends,
03:09Income and
03:10Expenditure account will be the credit.
03:14Understand.
03:17Understand.
03:25What will we do?
03:27If he says,
03:28Make it income in the year of receipt.
03:31Then what will be the entry at the time of receipt?
03:33Debit Cash.
03:34And what will be the credit?
03:36Expenditure account.
03:39But if he says,
03:40Make it income over 5 years,
03:41over 10 years.
03:42Then when the time will pass,
03:43we will make it income.
03:44But what will be the entry at the time of receipt?
03:46Debit.
03:47Debit Cash.
03:48Credit.
03:49Deferred Income.
03:50Deferred Income.
03:51And when the year will end,
03:52then what will be the entry at the time of receipt?
03:53For example,
03:55He mentioned 5 years.
03:58And you got the cash,
04:0010,000.
04:0110,000 Debit.
04:03Deferred Income.
04:0410,000 Credit.
04:05When the year will end,
04:06then what will we do?
04:0710,000.
04:08Divided by 5.
04:10How much?
04:112,000.
04:122,000 Debit.
04:13What will we do?
04:14Deferred Income.
04:152,000 Credit.
04:16What will we do?
04:17Income Expenditure.
04:18And how much Deferred Income is left?
04:208,000.
04:21Remaining Deferred Income.
04:23How much is left?
04:258,000.
04:26How much?
04:278,000.
04:29Out of this 8,000,
04:31next year,
04:32how much income will be made?
04:342,000.
04:352,000.
04:36And after one year,
04:37how much will be made?
04:396,000.
04:40After one year,
04:41how much will be left?
04:426,000.
04:43This means,
04:44this Deferred Income,
04:46we wrote it as Liability.
04:49The Liability which will be settled next year,
04:51what will that be?
04:52Current Liability.
04:53And what will be after one year?
04:55Non-Current Liability.
04:56You have forgotten, right?
04:58These small adjustments,
05:01with all these,
05:02the number is,
05:04what is it?
05:05Yes.
05:06If they tell you that
05:08it is related to 5 years,
05:10and you have to make it an income for 5 years,
05:13then whatever you get,
05:14all Deferred Income.
05:16One year is over,
05:172,000 income is made.
05:18How much is left?
05:198,000.
05:208,000 Deferred Income.
05:21Deferred Income is Liability.
05:23The portion of Liability
05:24which will be settled in one year,
05:26Current Liability,
05:27and what will be after one year,
05:29out of 8,000,
05:30which will be settled in one year,
05:312,000.
05:32So, from where will it go?
05:34Where will it go?
05:35Current Liability.
05:36And after one year?
05:37From where will it go?
05:38Current Liability.
05:39Hmm.
05:40Pakistan had a big mouth.
05:44Count the entries,
05:45count the countries.
05:46If there is any problem,
05:47count it.
05:55Why are you sad, son?
05:56The winters are over.
05:59This is how it is, son.
06:00This is how it is.
06:07Dance.
06:17Dance.
06:19Say it, boys and girls.
06:21Say it.
06:23Is it clear?
06:27Is it clear?
06:28Why are you sad, son?
06:33Okay, kids.
06:34Keep these things in mind.
06:37Let's do example number 8.
06:38Come on.
06:39IECAP Study Text,
06:40Example 8.
06:41And we have this
06:44example.
06:45There are no study text entries,
06:47but I have told you.
06:50These entries are in our book.
06:52Anyway.
06:54In our book,
06:55there is an example number,
06:56Multan Book Reading,
06:58Example 3, page number 535.
07:04We have made entries.
07:05If Lahore has not done it,
07:06we will be wrong.
07:07The people of Lahore and Karachi are wrong.
07:10We are wrong.
07:11I am sorry.
07:12But it is written in the paper
07:14that it is necessary to separate
07:16current and non-current.
07:18Okay.
07:19In our book,
07:20there is an example number 3, page number 535.
07:22And in the book of Lahore,
07:24there is an example number 8, page number Karesha.
07:28Multan Book Reading,
07:30which is also an example of our area.
07:36Okay.
08:06Example 9.
08:36Multan Book Reading,
08:37which is also an example of our area.
09:06Multan Book Reading,
09:07which is also an example of our area.
09:36Multan Book Reading,
09:37which is also an example of our area.
10:06Multan Book Reading,
10:07which is also an example of our area.
10:09Multan Book Reading,
10:10which is also an example of our area.
10:12Multan Book Reading,
10:13which is also an example of our area.
10:15Multan Book Reading,
10:16which is also an example of our area.
10:18Multan Book Reading,
10:19which is also an example of our area.
10:21Multan Book Reading,
10:22which is also an example of our area.
10:24Multan Book Reading,
10:25which is also an example of our area.
10:27Multan Book Reading,
10:28which is also an example of our area.
10:30Multan Book Reading,
10:31which is also an example of our area.
10:33Multan Book Reading,
10:34which is also an example of our area.