Gymnasium membership payable in advance


Problem:

A gymnasium offers a gymnasium membership payable in advance. There is no contractual right to a refund, although occasionally refunds were once granted to clients whose health circumstances prohibited them from continuing to attend the gymnasium. All other requests for refunds have been consistently refused. By 30 June 2011 the gymnasium had received $5,000 of membership subscriptions in respect of memberships commencing 1 July 2011.

Required:

Question: When is the $5,000 taxable?

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Accounting Basics: Gymnasium membership payable in advance
Reference No:- TGS0883181

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