Membership Dues

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:

Annual membership dues paid in advance
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:

Membership dues recognized in month one
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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Last modified May 30th, 2018 by Michael Brown

About the Author

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years in all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a BSc from Loughborough University.

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