Accounting Project-Clubs

1407 Words Jul 30th, 2012 6 Pages
What is the club’s main source of income?

 A major part of the club’s income is Membership fees. This is a fee paid by members. It is paid annually at R100 for juniors and R250 for adults. The Membership fees is a fixed amount so that along with additional income it covers the clubs expenses. There are usually Membership fees outstanding as well as people who pay in advance.
 Entrance fees is also a part of the clubs income. This is paid by new members who join the club. This fee is only paid once and stands at R200 for juniors and R400 for adults.
 The club also has a tuck-shop that sells refreshments as well as a coffee bar
 The club also has a shop that sells jerseys and socks.
 The club also gets money if they win a tournament.
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 If you have accrued income for the current year it must be added to your membership fees.
 If you have income received in advance from the current year it must be subtracted from your membership fees.
 When you write members off it must be added to your membership fees because their accrued income that you subtracted must now be cancelled.
This is all recorded in the ledger.

What is the stock holding policy and how is the selling price determined?

When stock is bought the amount is recorded. Every time we sell or buy stock it is recorded. Stock is seen as an expense. At the end of the year a physical stock take is taken. Then whatever is on hand is subtracted from the stock(sales) thus decreasing the expense. If you have stock on hand at the beginning of the year from the beginning of the year it can be seen as your opening balance on the Debit side of the ledger. Whenever you sell stock it is entered on the Debit side by decreasing the expense and whenever you buy stock it is entered in the Credit side and increases the expense.
The selling price is determined by how much money is needed to cover expenses. If the membership fees and entrances fees do not cover all the club’s expenses, the mark-up (selling price-cost price) is determined by finding out what is required to cover the remaining expenses.

What control measures are used in the shop?

The shop assistant will be there to assist shoppers as well as
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