This Project is in respect of term 2’s accounting task.| By Dimitri gomes|
1. The club’s main source of an income would be its membership fees which would cover its running costs. They also accumulate money from their one-time entrance costs and receive modest profit on their refreshments and uniform sales.
2. Its main objects of expenditure would probably be trading stock in the form of refreshments. The reasoning behind this is, because refreshments are bought and consumed on a daily basis and are meant for one time use. This means that the club would constantly be buying stock to refill its inventory, whereas the team jerseys and socks would only be bought perhaps weekly or monthly. If this club made use of outside coaching, then they would also need to pay the coaching fees and any job being performed for the club. Besides occupational fees, there are also running costs such as water and electricity and maintaining the field.
3. A membership fees account would have to be drawn up along with a normal bank account as this would house the club’s funds. Adjustments in the form of Income Accrued and Deferred Income would be drawn up at the end of each month. Membership fees written off would also need to be drawn up in order to cancel a member’s membership and fees. Accounts would also need to be drawn up for the trading stock, specifically for refreshments, jerseys and socks. Entrance Fees would also need an account along with a subscriptions account for members. There would also be an account for accumulated funds incurred for the club. If the club takes part in outside events with its members, then they would also need an affiliations fund account.
4. The accounting control measures will differ based on the size of the club. For example, a big club with a lot of transactions will follow a system similar to an ordinary business; a small club would follow a bookkeeping system that wasn’t so extensive. It...