| Annually a report must be presented to the members | | | | Payments Journal and the General Journal. Sometimes |
| on the clubs money affairs and financial position. The | | | | a petty Cash Journal is also used. As the transactions |
| form of the report presented will depend on the size | | | | of a club are usually not so voluminous the journals are |
| of the club and the volume of its activities. In the case | | | | closed off annually at the end of the accounting period. |
| of a club with a few members, and of which all | | | | 3. The journals posting is done to the ledger, accounts |
| transactions are for cash, a statement of receipts and | | | | are cast and pencil footings written in. A trial balance is |
| payments will be sufficient, but in the case of a big club | | | | extracted to test the posting and arithmetical |
| an income and expenditure statement and also a | | | | correctness of the work. At the end of the accounting |
| balance sheet are desirable. The size of the club and | | | | period the necessary journal entries are made for the |
| the volume of its transactions will also determine | | | | adjustments and posted. A post adjustment trial |
| whether a complete set of books must be kept or not. | | | | balance is prepared. |
| In the case of a small club with cash transactions only | | | | 4. The closing journal entries are made and posted, in |
| it will be sufficient to enter all transactions in an analysis | | | | the case of clubs posting is done to an income and |
| cash book or in separate cash receipts and cash | | | | expenditure account in which the surplus or deficit is |
| payments journal and then prepare a statement of | | | | calculated and posted. Income and expenditure |
| receipts and payments from it. In a larger club | | | | account is closed off to the accumulated fund account |
| complete ledger accounts will be opened from the | | | | instead of the capital account. A post closing trial |
| nature of the transactions, a cash receipts Journal, a | | | | balance is extracted. The financial statements are |
| Cash Payments Journal and a General Journal will | | | | drawn up. |
| normally be used. It is essential that a complete list of | | | | Depending on the size of the club and the volume of |
| members will be kept on which will be recorded that | | | | the transactions, the above mentioned procedures are |
| membership fees are paid. | | | | often departed from as a short cut can be followed to |
| Accounting Procedures | | | | attain the final result to report to the members. Instead |
| The accounting procedures to be followed: | | | | of working according to a complete system of book |
| 1. Documents must be issued or obtained for the | | | | keeping with all the ledger accounts as described in the |
| various transactions. Receipts must be issued for all | | | | paragraph on accounting procedures, clubs often write |
| cash receipts, for membership fees a receipt issued | | | | up only Cash Receipts and Payments Journals or an |
| separately to each member. The amounts deposited | | | | analysis cash book and then prepare the financial |
| must correspond with the receipts issued, for | | | | statements for the members from the information |
| payments the necessary purchase vouchers must be | | | | found in them. First of all it is necessary to note how |
| submitted and each payment should be authorised by | | | | an analysis cashbook is adapted for recording the |
| two persons if a current account is kept two persons | | | | transactions of clubs. In analysis cash book the bank |
| usually the secretary and the chairman. When only a | | | | account is kept in the cash book itself. Suitable analysis |
| savings account is kept as is often the case, the | | | | columns are used to enter the various receipts and |
| withdrawal slip must be signed jointly by two | | | | expenses and the total of each column is found. At |
| authorised persons. | | | | clubs the cash book is closed off only at the end of |
| 2. The documents the transactions are entered in the | | | | the year, from the Cash Book a summary of the |
| appropriate journals. These journals will entail the | | | | receipts and payments can be made for the year. |
| following, the Cash Receipts Journal, the Cash | | | | |