Accounting - Club
Accounting Project
James Nevin
Term 2 2012
Income, Expenses and Recording System
Income:
The Western Cape Soccer Club has multiple sources of income, the main ones being: * Membership Fees – The Club has 260 members who pay different annual prices. Juniors pay R100 per annum and adults pay R250 per annum. * Entrance Fees – The Club charges entrance fees for all new members. Juniors pay a fee of R200 and adults pay a fee of R400. * Tuckshop and Bar – The Club runs a tuckshop and bar which sell a range of refreshments. The facilities do well, especially on match days, where there is a higher demand. * Club Shop – The Club runs its own shop, one which sells club jerseys and socks to members.
(Note: Tuckshop and Bar and Club Shop are both here considered incomes since they are assumed to be a regular source of profit.)
The income sources have specific ledger accounts which they are recorded in. Some of these differ to those of a business.
Membership fees and entrance fees are recorded in the Membership Fees and Entrance Fees accounts in the general ledger respectively. These accounts are found in the Nominal Accounts section and are considered income accounts.
Unlike a business, the buying and selling of goods is recorded in accounts specifically for those goods (There is no Cost of Sales or Trading Stock account). For instance, items sold for cash at the tuckshop will be recorded in the Sales and the Refreshments accounts. Jerseys bought on credit will be recorded in the Jersey and Creditors’ Control accounts. The Club therefore has a Refreshments account (Tuckshop goods), a Jersey account and a Sock account (both for Club Shop goods). These are Income and Expense accounts.
Instead of income being recorded to the credit side of Profit and Loss (as would be done in a business), it is instead recorded to the credit side of Income and Expenditure. Please note that the Income and Expenditure Account is different to the Receipts and Payments
James Nevin
Term 2 2012
Income, Expenses and Recording System
Income:
The Western Cape Soccer Club has multiple sources of income, the main ones being: * Membership Fees – The Club has 260 members who pay different annual prices. Juniors pay R100 per annum and adults pay R250 per annum. * Entrance Fees – The Club charges entrance fees for all new members. Juniors pay a fee of R200 and adults pay a fee of R400. * Tuckshop and Bar – The Club runs a tuckshop and bar which sell a range of refreshments. The facilities do well, especially on match days, where there is a higher demand. * Club Shop – The Club runs its own shop, one which sells club jerseys and socks to members.
(Note: Tuckshop and Bar and Club Shop are both here considered incomes since they are assumed to be a regular source of profit.)
The income sources have specific ledger accounts which they are recorded in. Some of these differ to those of a business.
Membership fees and entrance fees are recorded in the Membership Fees and Entrance Fees accounts in the general ledger respectively. These accounts are found in the Nominal Accounts section and are considered income accounts.
Unlike a business, the buying and selling of goods is recorded in accounts specifically for those goods (There is no Cost of Sales or Trading Stock account). For instance, items sold for cash at the tuckshop will be recorded in the Sales and the Refreshments accounts. Jerseys bought on credit will be recorded in the Jersey and Creditors’ Control accounts. The Club therefore has a Refreshments account (Tuckshop goods), a Jersey account and a Sock account (both for Club Shop goods). These are Income and Expense accounts.
Instead of income being recorded to the credit side of Profit and Loss (as would be done in a business), it is instead recorded to the credit side of Income and Expenditure. Please note that the Income and Expenditure Account is different to the Receipts and Payments