Examples of Fees Revenue

Examples of Fees Revenue

There are number of business which provides services and charge the fees for their services. This fees in revenue for those institution under international Financial reporting Standards. Following are the famous examples of those services

1.      Hospital charge fee from the patients

2.      Lawyers firm charge fee from the clients

3.      Chartered account firm charge fee for the financial services

4.      Universities charges fee for the tuition provided.

Example of Fees as Revenue

Health and Heath hospital accounts shows that during the year 10,000 patient visited and each patient was charged $ 40. Calculate the revenue of the Hospital. Hospital also sold a furniture at 30,000 which had a net book value of 22,000

Solution

According to definition of revenue is income which arises from the normal business activities and gain arise from other activities. The sale and gain are both income

Revenue (Fees)	400,000
Gain on Sale  ( 30,000-22,000)	8,000
Income	408,000

Gain =sale proceed of asset minus net book value of asset.