Liability Account?


Joined
Aug 2, 2011
Messages
2
Reaction score
0
I am new to accounting - I have a client who has a gymnastics facility. She also hosts a gymnastics team. The team raises money, which my client deposits into her account, to pay for each individual's expenses. For example, for one particular meet each girl is expected to raise $50 through the fundraising activity to pay for her $50 meet fees. There are five girls on a team. My client would deposit $250 into her account and then pay the $250 meet fee to the association hosting the meet. She also collects money for meet uniforms from each member (no fundraising) and then pays one fee in the same way. She doesn't generate any income for herself - the team members either raise money through a fundraiser to pay for the meets or they reimburse my client for supplies. I'm not sure how to account for this - I am thinking about setting up one liability account to have the money flow into and out of with a zero balance at the end of the year but I'm not sure that this is correct.
 
Ad

Advertisements

kirby

VIP Member
Joined
May 12, 2011
Messages
2,129
Reaction score
291
Country
United States
You are correct!

Receive cash
Dr Cash
Cr Liab

Pay it out
Dr Liab
Cr Cash
 
Ad

Advertisements


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

Top