Accounting - Club Study Paper

Accounting Project

James Nevin

Term 2 2012

Income, Expenditures and Recording System

Salary:

The European Cape Sports Club provides multiple sources of income, the main kinds being: * Membership Costs – The Club features 260 members who spend different twelve-monthly prices. Second pay R100 per annum and adults pay out R250 per annum. * Entrance Fees – The Membership charges entry fees for all those new members. Benjamin pay a fee of R200 and adults pay a fee of R400. * Tuckshop and Bar – The Club works a tuckshop and tavern which sell a range of refreshments. The facilities flourish, especially on match days and nights, where there is a higher demand. * Membership Shop – The Golf club runs its own shop, one which sells membership jerseys and socks to members. (Note: Tuckshop and Bar and Club Store are both here considered earnings since they are assumed to be a regular source of earnings. ) The income sources have specific ledger accounts which they are recorded in. Some of these vary to those of a business. Account fees and entrance charges are recorded in the Account Fees and Entrance Fees accounts in the general journal respectively. These accounts are located in the Nominal Accounts section and are deemed income accounts. Unlike a business, the exchanging of goods is recorded in accounts especially for those products (There is no Cost of Product sales or Trading Stock account). For instance, products sold for cash at the tuckshop will be documented in the Sales as well as the Refreshments accounts. Jerseys bought on credit rating will be registered in the Hat and Creditors' Control accounts. The Club therefore includes a Refreshments consideration (Tuckshop goods), a Shirt account and a Sock account (both for Golf club Shop goods). These are Profits and Expenditure accounts. Instead of income becoming recorded towards the credit area of Profit and Damage (as would be done in a business), it is instead recorded to the credit rating side of Income and Expenditure. Please note that the Cash flow and Expenditure Account is different to the Invoices and Obligations account...



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