Urgent!!! Account問題 車主會會籍入數點做 係唔係要做Amortization

The purchase of car and VIP membership should be accounted for separately.

The car will be booked as fixed asset and you should know the accounting entries already. Just a reminder to refer to your company accounting policy regarding the useful life and residual value for motor car.

For the VIP owner club membership, it is expense in nature and cannot be added on to cost of the motor car. It is not intangible asset definitely. Intangible asset is something which can bring economic benefits to the company, e.g. franchise, trademark, copyright, licence, technology knowhow etc. The membership will not generate income nor bring benefits to the company at all.

Your case is just you have paid 24-month expenses in advance. The entries will look like:
1. Dr Prepayment (B/S item) 66,590
Cr Bank 66,590
To record payment of membership fee for 24 months.

2. Dr Overhead expense (P/L item) 2,774.58
Cr Prepayment 2,774.58
To amortise prepayment of membership fee (66,590/24) monthly.

At the end of 24 months, the balance of Prepayment account will become zero.

但車會會籍唔係應該係intangible asset, 應該要做Amortization?

你買車依家都會入埋車主會，而條數應該咁入：
1. 買車就Dr Motor Vehicle Cr. Bank ﹝記得年尾做折舊！﹞
2. 入車會 Dr. Prepayment Cr. Bank
3. 做費用 Dr. Motor Car Expenses Cr. Prepayment ﹝做幾多要睇你個車會在財政年度用咗幾多﹞
希望幫到你！