CLub Accounts problem

[farjaad]

I just want to know what is the treatment of Deposit Account in club accounts or even sole traders? My teacher said they should be included in fixed assets as they are long term investment, but the marking scheme suggests they should be part of current assets, whats the correct treatment?

 

[huzaifa]

umm no offence...but ur teacher is wrong!....Any kind of bank holdings or asset..is current account item since they require daily transactions

 

[Giraffe195]

I think your teacher messed the account up with the lifetime membership thing. In that account, the value is split over a number of years to spread out the revenue.

 

[farjaad]

So they should be part of current assets?

 

[huzaifa]

Yes !