Introduction to Bookkeeping in Shimenkan Community Development Foundation
Guan Yuhong March 2006
The community bookkeeping for the Weining Project is divided into day-book journal and account journal; the day-book journal is a journal book while the account journal is journal voucher, divided into the ledger and the subsidiary ledger. The entries vary with the division of sums from communities not donating and communities donating. According to the actual situation of the communities, measures such as on-site repayment and loan issuance, on-site book keeping, on-site loan repayment announcement are taken to help farmers aware of and supervise fund operation.
Focusing on this series of activities, design and use accountant book keeping, day book journal, day book subsidiary subject book, farm family joint application form, community loan contract, five-family joint-guarantee and mutual help contract, loan repayment card for family-group (the three-couplet receipt is not used), and the on-site community financial training.
I. Division of amount£º
1. Communities not donating: According to the loan contract signed by the project office and communities, the amount is divided into the loan principal, community fund and item interests. For example, the farm household loan is RMB1,000 with the monthly interest being 6.67¡ë, among which 3.67¡ë is the community public accumulation(community fund), 3¡ë turned to the county project office as risk fund to be deposited in credit cooperative by Shimenkan Center. If the load can be repaid on time, it is calculated on monthly base and the formula is as follows:
Monthly receivable principal=Loan principal¡Â12
Monthly receivable foundation=Loan principal¡Á3.67¡ë
Monthly receivable interest =Loan principal¡Á3¡ë
2. Communities donation: According to the items set by the community after donation, the amount is divided into development fund, education fund and public welfare fund. For example, the farm household loan is RMB1,000 with the monthly interest remaining 6.67¡ë, among which 2.67¡ë is deposited in the special education fund to support children¡¯s education, 4¡ëdeposited in public welfare fund as the accumulation or expenses by the community. If the load can be repaid on time, it is calculated on monthly base and the formula is as follows:
Monthly receivable development foundation (principal)=Loan principal¡Â12
Monthly receivable education fund=Loan principal¡Á2.67¡ë
Monthly receivable public welfare fund=Loan principal¡Á4¡ë
II. Community loan issuance procedure: Five families forming one group¡ú electing group leader¡ú submitting application to community committee¡ú examination and approval by community loan issuance and evaluation team(not applicable to donating communities) ¡úon-site loan issuance at community farm household conference(all procedures are completed in the community).
III. Community money collection procedure: members of the ¡°Five families¡± ¡ú group leader¡ú committee¡ú committee filling the group¡¯s repayment card and returning to the group leader and book keeping onsite¡ú supervising the team¡¯s announcement of issuance and repayment to loan(the whole process is completed at the community farm household conference.
IV. Subjects setup:
1. Communities not donating: The total account subject is set as allocation fee, other income, amount receivable-principal, fund (accumulation) income, project interests and other expenses. Family subsidiary ledger lists every family¡¯s loan and repayment on one page. The debit, the credit and balance are changed to principal, fund and interests.
2. The total account subject of communities donating is set as allocated fee, other income, amount receivable-development fund, education fund income, public welfare income, medical care fund and other expenses. Family subsidiary ledger lists every family¡¯s loan and repayment on one page. The debit, the credit and balance are changed to development fund, education fund and public welfare fund.
V. Community family deposit: for convenience of community cashier and accountant to verify and for the farm family to check and supervise, the community, after discussion, opens account in the credit cooperative as needed and deposit is made on family basis. For example, there are four bank books for Xinying Community, the balance of development fund bankbook corresponds to the balance of development fund in the account book, the balance of education fund bankbook corresponds to the balance of education fund in the account book, the balance of public welfare fund bankbook corresponds to the balance of public welfare fund in the account book, and the total of all the bank book corresponds to the balance of the day book journal.
VI. The community has been filling seasonal statement of community
fund since 2002.
Flow of Farm Household Loan (All activities are completed within the community.)
Flow of Farm Household Receiving Loan (All activities are completed within the community.)
After the activities, the committee deposits the remaining money in the credit corporative on time.
shimenkan--English--Introduction to Bookkeeping in Shimenkan Community Development Foundation