Accounting Project: Non-Profit Clubs
Question One:
Definition of Income: Refers to amounts received or receivable. I.e. Earned conducting business and club income. E.g. Membership fees, sale of refreshments, donations, etc. Not sale of assets. Gain to club. Increase surplus.
Answer: -membership fees -entrance fees -sale of refreshments -sale of uniforms
Question Two:
Definition of Expenditure: Refers to the amounts paid or payable. Normally incurred while running the club. Necessary to generate income. Either used up immediately or have no lasting value. Loss to club. Decrease surplus. Debited to Nominal accounts section in General Ledger. E.g. Rent expense, stationary, electricity, wages, etc.
Answer: -uniforms to sell -refreshments to sell -electricity -water -rent expense -salaries/wages -stationary
Question Three:
Answer:
• Membership Fees: –also known as subscriptions. -usually most important income (revenue) to a club, major portion. -together with additional income, cover expenses. -fixed amount. -paid by members of club. -usually payable annually, sometimes quarterly or even monthly. -income to club. • Income Receivable/Accrued income: - (same as usual), income still owed to us but not yet received. E.g. members who have not yet paid subscription.
• Income Received in advance: - (same as usual), income received before it was due to be paid. E.g. members that pay their subscription early.
• Honorarium: -certain people that do a lot of work (bulk of the work) for the club are occasionally voted a sum of money (remunerated) as a token of appreciation at the end of the year. -expense to club.
• Entrance Fees: -new members may be expected to pay a fee to join the club. -normally a once off fee. -I.e. when the member joins for the first time. -income to club.
• Affiliation Fees:
Definition of Income: Refers to amounts received or receivable. I.e. Earned conducting business and club income. E.g. Membership fees, sale of refreshments, donations, etc. Not sale of assets. Gain to club. Increase surplus.
Answer: -membership fees -entrance fees -sale of refreshments -sale of uniforms
Question Two:
Definition of Expenditure: Refers to the amounts paid or payable. Normally incurred while running the club. Necessary to generate income. Either used up immediately or have no lasting value. Loss to club. Decrease surplus. Debited to Nominal accounts section in General Ledger. E.g. Rent expense, stationary, electricity, wages, etc.
Answer: -uniforms to sell -refreshments to sell -electricity -water -rent expense -salaries/wages -stationary
Question Three:
Answer:
• Membership Fees: –also known as subscriptions. -usually most important income (revenue) to a club, major portion. -together with additional income, cover expenses. -fixed amount. -paid by members of club. -usually payable annually, sometimes quarterly or even monthly. -income to club. • Income Receivable/Accrued income: - (same as usual), income still owed to us but not yet received. E.g. members who have not yet paid subscription.
• Income Received in advance: - (same as usual), income received before it was due to be paid. E.g. members that pay their subscription early.
• Honorarium: -certain people that do a lot of work (bulk of the work) for the club are occasionally voted a sum of money (remunerated) as a token of appreciation at the end of the year. -expense to club.
• Entrance Fees: -new members may be expected to pay a fee to join the club. -normally a once off fee. -I.e. when the member joins for the first time. -income to club.
• Affiliation Fees: