(i) Subscription : Subscription is an agreement to be a part of an Association , Club etc. The member has to pay a fixed amount at regular interval to remain as a part of the Club Association. There are two ways of computing Subscription for the Current Accounting Year : 

• Statement Method 
• Account Method

Subscription will be Treated as Liability , if :

• It is of Non-recurring Nature.
• It is Received for Certain Specific Purpose such as :

– Subscription for Tournament Fund 

– Subscription for Governor’s Party 

– Subscription for Building Fund 

– Subscription for Construction of Science Block .

(ii) Life Membership Fees : It is a Capital Receipt , Irregular in Nature received once from the Member throughout His / Her Life. It is Capitalized and Shown at the Liabilities Side . 

(iii) General Donation : General Donation can be classified as :

– General Donation of Big Amount . It is a Donation of Non 

– Recurring Nature. So it should be Capitalized and Shown at the Liabilities Side of the Balance Sheet . 

– General Donation of Small Amount . This Donation is of a Recurring Nature . It is expected that such Donation will be Received every year. It is a Revenue Receipt and it should be treated as Income and Recorded at the Income Side of Income and Expenditure Account .

(iv) Specific Donation : Specific Donations are the ones received for Certain Specific Purpose . It is a Capital Receipt and should be Capitalized and Posted at the Liabilities Side of the Balance Sheet . These Specific Donations may be for Tournament Fund , Construction of Building Hall, Lawn, Pavilion, Library or Governor’s Party etc. 

(v) Legacy : It is the Amount Received from Individuals Received as Per Will . It is a Receipt of Non – Recurring Nature. So it should be Capitalized and Shown on the Liabilities Side . It is shown at the Debit Side of Receipts and Payment Account . It does not matter , whether the Legacy is of Small Amount or Big Amount .