Grade 11 Accounting 2011 Project Clubs-Western Cape Soccer Club

1. & 2.Main sources of income and items of expenditure The purpose of Western Cape soccer Club is to provide facilities for its members, while the purpose of any business is to make a profit. We as Western Cape Soccer Club do not aim to make a profit but our income should be more than our expenses. Here is a table of our main sources of income and main items of expenses.

Main sources of income Membership fees Entrance fees Tuck-shop Kit shop Donations Sponsorships

Main items of expenditure Honorarium Affiliation fees Water and light Refreshments Repairs Bank charges Wages/salaries Consumable stores Telephone Rent

3. Ledger accounts involved in the recording of transactions that are different to a business

Membership fees: This is the clubs main source of income and it is paid by the members. It is paid annually and is at a fixed cost. Membership fees together with the other income only cover the expenses. If the income is more than the expenses it is called a surplus and not a profit. Therefore a loss is replaced with a deficit.

Entrance fees: This occurs when new members join the club and are required to pay an entrance fee. Entrance fees are only paid once, when the member joins the club.

Capital fund/Accumulated fund: At Western Cape Soccer Club there are no owners or partners who supply the capital. Therefore a fund is set up by the club for surpluses that may arise from tear to year. If the club makes a surplus it is transferred to the capital fund/accumulated fund account. This surplus is then put back into the club for the benefit of the members. This will include new facilities and equipment as well as improvements and upgrades. Other ledger accounts include: Refreshments, Honorarium, Affiliation fees, and Income and Expenditure

4. Control measures in keeping of the ledgers. There must be accurate bookkeeping of all receipts and payments. There must be proper control over all cash receipts and payments. There must be proper documentation of all transactions.

The owner or manager must sign off on all payments made. Annually, financial statements must be presented to the members.

5. Policy regarding the collection of membership fees and the ledger account.

We expect all membership fees to be paid up front. This is to be paid annually at the beginning of each year. We encourage our members to pay their membership fees in advance. If members fail to pay their fees for two seasons, there will be consequences. They will be expelled from the club and their membership fees would be written off.

This can be seen in the following ledger account: Membership fees Accrued income Income & expenditure Income received in advance GJ 2 500 Income received in advance Bank GJ 250

GJ 65 000 GJ 250

GJ

62 000 2 500

Membership GJ fees written off Accrued income GJ

3 000 67 750

67 750

6. Stock holding policy and how our selling price is determined. We order stock on a monthly basis and during the month when it is necessary. It all relies on how fast our stock is sold and how much we still have left. All stock that is delivered is taken by the shop manager on the day of arrival.

 Our selling price is determined by means of a mark-up.

We use a 25% mark-up on cost, on all our products.

This is to cover the costs of the salaries of our shop employees.

7. Control measures in bar/coffee shop and tuck shop for both stock and cash. Access to the till is limited to the manager and cashier only. The shop is restricted to cash sales only. Once an item is sold a receipt needs to be issued immediately. We also have cameras installed around the shop.

8. Control measures in the kit shop for stock. Once stock is sold it must be recorded into the appropriate journal. Once stock is purchased it must be checked against the receipt/invoice to see for any irregularities.
Stock take is to be done on a regular basis. Most of the controls in place in the kit shop are the same as those in the bar/coffee shop and

tuck shop and vice versa.

9. Staff duty and control measures in place. We have one manager and cashier in charge of both sops. Other employees include cleaning staff and maintenance staff. We have a clock in system implemented to avoid slacking.

If stock disappears during an employees shift, the money will be deducted from their salary.

10. The fundraising event proposal. Introduction: We are planning on hosting a fancy dress dance that is open to the public. The aim of the event is not only to raise funds for the tour but also to bring the community together. We will be charging an entrance fee and refreshments will be on sale. We will also be running a competition for the best dressed person, who will win a prize. Fine details: The proposed date for this event is the 22 October 2011. The event will be held at the clubs main hall in order to save money on hiring a venue. We will be levying each of our 260 members with one ticket. Each ticket will cost R40. The money need to fund the event will be borrowed from the clubs finances. The club is trying to save as much money as possible on the event and tour. Therefore we will be trying to get sponsors, donations and discounts. The event will be advertised on radio, as one of our senior members works at a radio station and is able to advertise the event for free. We will also be handing out pamphlets to the local community. We are aiming to raise a profit in the region of R10 500 through the fancy dress dance.

Budget Income Entrance fees (R260 x R40) Refreshments Donations R17 000 R10 400 R6 500 R1 000

Expenses DJ Electricity Equipment Prizes Refreshments Decorations Advertising Profit

R7 300 R1 000 R250 R300 R300 R5 000 R250 R200 R10 600