booking date? receipt date? or both?


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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.
 
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kirby

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Option b makes the most sense in producing accurate financial info.
 

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