Accountancy Part AAccounts for Non Profit Organsiation

Identify the admission fee that is paid only once by a person to beco…

Identify the admission fee that is paid only once by a person to become member of a Not-for-Profit Organisation.

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → Entrance Fee

The entrance fee (admission fee) is paid only once, when a person becomes a member. Life membership fee is paid in a lump sum in place of periodic subscription, subscription is paid every year, and legacies are amounts received under a will.

Note: This question is from the pre-rationalised NCERT book. The topic is not there in the latest NCERT book (2026-27), but it is still in the CUET 2026 syllabus, so do not skip it.

NCERT (Pre-rationalised edition):
Entrance Fees – “… Entrance fee also known as admission fee is paid only once by the member at the time of becoming a member. In case of organisations like clubs and some charitable institutions, is limited and the amount of entrance fees is quite high. Hence, it is treated as non-recurring item and credited directly to capital/general fund.”