Investment Clubs Manual055

Investment Clubs Manual055 - 49 October 2008 record of the...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 49 October 2008 record of the full transaction. One should. therefore, enter the proceeds from the sale (after costs) on the left hand side under Sales of Investments and under Total Banked. At the same time the total cost of the purchase (including fees) should be entered under Purchases of Investments and Total Payments on the right hand side. The two figures will ‘net off' to the amount of the cheque received from the stockbroker. Your bank statement will only show the receipt of the stockbroker’s cheque for the balance, but your Cash Account will give full details ofthe buying and selling transactions. Preparing the bank reconciliation Theoretically the balance on the Cash Account should tally with the balance at the bank. There are three reasons why this may not be so (or four if you count clerical errors by you or the bankl). I . Subscriptlons p-Id by stlndlng order It is recommended that subscriptions are paid by standing order as a time saver for the treasurer, and this is made mandatory by some clubs’ruies. These amounts will have been paid direct to the club’s bank account but the treasurer should not assume that all have been received. It is safer If details of each member's payment are only entered In the cash account when evidence of receipt becomes available from the bank statement. This is one reason why it is important to instruct your bank as to the date on which bank statements are to be issued each month. It is a good Idea to set the date for payment of subscriptions two weeks earlier than the date of your monthly bank statement. This allows time for any late payments to work their way onto the bank statement and avoids the need for adjustments later. 2. Bank chug“ or Interest Charges which have been deducted from the club's account should be entered on the payments side, first under Sundry Payments and then in the Total Payments column. If you are fortunate enough to have been paid interest by the bank this item should be entered under Sundry Receipts and in the Total Banked column. ProShare Investment Club THE MANUAL ...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern