Topics: Generally Accepted Accounting Principles, Cost, Costs Pages: 2 (340 words) Published: May 25, 2014
1. Clubs are mainly financed by monthly subscriptions from members, known as membership fees. The amount of membership fees and how it will be paid is clearly stipulated in the constitution of the club, and is decided upon by the Management Committee. Additional income that clubs operate on are entrance fees, which are paid once by new members, profit from sale of refreshments, profit on sale of jerseys, tracksuits, shirts and socks. Donations received is also considered as an income, as well as sponsorships, grants and interest received.

2. Items of expenditure for clubs are mainly cost of refreshments, salaries and wages, maintenance costs, and expenditure on cost price of club jerseys, tracksuits, etc. Other expenses include utilities (water and electricity), cost of fundraising, insurance, debts, advertising/marketing, rent, affiliation fees, cost of tournaments, honorarium and bank charges.

3. The ledger accounts of the club differs from the ledger accounts of a business as clubs are non-profit organizations. The ledger accounts that are used to record income and expenditure of the club include: Membership Fees

Membership fees Written Off
Entrance Fees
Affiliation Fees
Refreshments on Hand
Income and Expenditure
Tuck shop/coffee shop
Jerseys on Hand
Socks on Hand
Stock from Tuck Shop
Profit on Sale of Refreshment
Profit on Sale of Jerseys
Profit on Sale of Socks
Income Received in Advance
Accrued Income

4. A club cannot exist without membership and membership fees, therefore it is imperative that fees are paid accordingly. Each member needs to be assessed individually taking into account their financial ability. If a member has not paid their fees for two consecutive years, a warning will be given to pay the missing dues in one month and if not, their membership will be terminated. However, punctual members will be allowed vouchers for clothing or refreshments, or discount on further...
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