[GNC] Ideas and recommendations for community project

[gibelium at gmx.net]

Thank you David,
> You do not have to account for the details of other entities (e.g. your members)
> in accounting for contributions from members, In the eaxample you gave of a
> member buying something for the community entity and being reimbursed, the
> purchase by the member on behalf of the community creates a liability for the
> community and a corresponding expense inthe communities account, so the purchase
> would be treated as a credit to an appropriate liability account ( could be an
> accounts payable account) and a debit to the appropriate expense account (or a
> debit to an asset account if it was a long term asset from which the community
> would derive future benefits). When the reimbursement is paid to the member, the
> liability account is debited and the bank account is credited for the amount of
> the reimbursement.

So at least for the part of expenses sounds pretty straight forward... :-)

> It would be wise to get professioanl accounting advice on what is required in your
> jurisdiction.

In fact, that will be the path I will take. I will try to find people
and projects that have the same challenges or at best have already
mastered them and look for an accountant who knows requirements of the
legislation and can help with the design.

I know of at least two similar projects here in Bolivia.

Best regards,
Sebastian