Two Double Entry Accounting Questions..

[Mark Phillips]

On Mon, Jan 31, 2011 at 3:20 PM, FireFly <fireflys_98 at yahoo.com> wrote:

>
>
> --- On Thu, 1/27/11, Mark Phillips <mark at phillipsmarketing.biz> wrote:
>
> > 1. I have to keep track of how much each parent donates -
> > if more than
> > $1,000 then I have to send them a 1099 at the end of the
> > year. Less than
> > $1,000 and their canceled checks are proof of donation. To
> > take in a
> > donation, I deposit the money in the checking account and
> > offset that
> > deposit to an income account for that person. At the end of
> > the year, I look
> > at everyone's income account and can see who needs a 1099.
> > Sound good?
>
> Item 1, sounds fine to me
>
> >
> > 2. This one is trickier. We have a batting coach who comes
> > once a week and
> > charges a flat fee/team - $150. Teams average in size with
> > 10-12 players.
> > So, I charge each player $15 for 2 hours of batting
> > instruction or about 100
> > cuts/girl. Not all players show up every time - the average
> > is 10. I want to
> > set up an account for each team to keep track of how much
> > extra they have
> > paid in for batting, and if less than 10 players show up
> > one time, deduct
> > the $15/missing player from that account. If the account
> > ever reaches $150,
> > then they get a free night of batting. How do I enter the
> > transaction? Based
> > on # 1 above, I deposit $15 in the checking account and
> > offset that with $15
> > to the income account for that person. Any money I collect
> > is a donation.
> > Say I do that 11 times for a total deposit of $165. I then
> > write a check for
> > $150, and offset that against ....what...Batting expenses
> > for the team? and
> > what about the extra $15 that was paid in this week, and
> > the missing $15
> > next week because only 9 could make the practice?
>
> To my mind, the best way to do this is going to be (remember, I'm not an
> accountant, nor have I ever suggested I'm an accountant)
>
> Setup sub-accounts for each team in the checking account (assuming that's
> where these payments goto and come from). Each payment for batting practice
> goes into this sub-account, and all expense payments come out of that
> sub-account (nominally $150 per time). This way you have a sub-account that
> has the teams running "balance" for batting practice.
>

Great idea! I agree about the reconciling part....but I don't have a lot of
transactions, so I may be able to muddle through. Thanks!

>
> The only complexity comes if people pay for say that plus a donation at the
> same time, if that happens it may be tricker to reconcile (depending on your
> transaction volume and how you're doing reconciliation).
>
> - James Duerr
>
> E-mail: FireFlys_98 at yahoo.com
> ---------------------
> Discover a lost art - play Marbles. May 2004
> www.marillion.com
>
>
>
>
>