What are Membership Dues?
Membership dues are regular payments made by members of an association. The dues represent the cost of being a member of the association, and are used to fund activities carried out by the organisation.
Membership dues are distinct from membership fees which tend to be one off payments.
The double entry bookkeeping for membership dues paid in advance is similar to other forms of income. For example, if a member pays an annual membership renewal of £1,200 in cash then the bookkeeping entry would as follows:
| Account | Debit | Credit |
|---|---|---|
| Cash | 1,200 | |
| Deferred membership income | 1,200 | |
| Total | 1,200 | 1,200 |
In month one, one twelfth of the membership dues paid in advance would be recognized as income, and the following entry would be made:
| Account | Debit | Credit |
|---|---|---|
| Deferred membership income | 100 | |
| Membership income account | 100 | |
| Total | 100 | 100 |
For further information see the Wikipedia union dues definition.
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