Q. Admission fees collected by school is capitalised

Question

A school (non-corporate entity) collects admission fees from applicants seeking admission in the school and capitalises the same on the plea that admission fees collected from club members are usually capitalised as provided in Accounting Standards (AS) 9, Revenue Recognition.

But such admission fees paid to clubs gives ownership rights to the members, which is not the same in case of a school.

Has the school erred in accounting?