Life Membership is when a member makes a one-time payment and receives membership benefits for life. Accounting Treatment: Life Membership Fee is essentially a premium received for providing lifetime benefits. Recognition: Life membership fees are often capitalized (not expensed immediately) as they benefit the organization over many future periods. Capitalization: Life Membership Fee is shown in Balance Sheet as Capital/Fund rather than in I&E Account, Or amortized over expected remaining life of organization. Alternative Treatment: Some NPOs may expense life membership fees immediately if amount is immaterial, Or if organization policy treats as revenue. Calculation: Life Membership = Cash Received in period + Arrears - Closing Arrears. In I&E Account: If not capitalized, shown as income; if capitalized, may be shown separately below I&E Account. Balance Sheet: Outstanding life membership fees shown as Current Asset, Capitalized life membership fees shown in Capital/Fund section. Expense Allocation: Some organizations allocate annual operating costs to life membership fund; this is deducted from life membership capital. Documentation: Maintain life member register showing names, fees received, dates, and any cost allocations. Related Treatments: Distinguish from regular subscriptions (which are annual and recurring), From entrance fees (which are mandatory for membership), Life membership may include automatic entry to some organizations. Exam tip: Understand the capital nature of life membership; practice identifying whether it's capitalized or expensed; distinguish from subscriptions and entrance fees; handle arrears and advances appropriately.