booking date? receipt date? or both?

Joined
Jun 10, 2019
Messages
1
Reaction score
0
Country
Myanmar
I'm put in charge of book keeping for a small organization of about 150 people. I thought this an easy job until I encountered the following scenario. BTW, I have no accounting training.

A golf tournament is held each month. The person in charge doesn't always claim the expense right away. Sometimes, he claims the expenses for two months at one time. How should these expenses be booked? I can see three different ways of doing it.

a) book the expenses with the date they are claimed. For example, if the February and March expenses were claimed on March 15th, they were booked on March 15th.
b) book according to the receipt days. Although the February expense was claimed on March, it would be booked with a February date, the receipt date.
c) use two columns to book both the claim date and receipt date.

In scenario a, the report would show that there was no golf tournament expense, and, hence, no golf tournament held, in February.
In scenario b, a hypothetical auditor would find that the account balance and the actual cash-on-hand for February were different. There would be extra money because the golf money was not actually claimed.
C is able to solve the problems of a and b but I wonder if people actually do this.
 

kirby

VIP Member
Joined
May 12, 2011
Messages
2,460
Reaction score
334
Country
United States
Option b makes the most sense in producing accurate financial info.
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Members online

No members online now.

Forum statistics

Threads
11,783
Messages
27,852
Members
21,797
Latest member
4GTFull1

Latest Threads

Top