How to Record Ticket Sales and Prize Expenses for a Charity Raffle
Recording ticket sales from a charity raffle event.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash in Hand / Bank | Asset (+) | 5,000.00 | - |
| Fundraising Revenue: Raffle | Revenue (+) | - | 5,000.00 |
| Prize Expense | Expense (+) | 500.00 | - |
| Cash / Prize Value | Asset (-) | - | 500.00 |
💡 Accountant's Note
Raffle proceeds are fundraising revenue. The cost of prizes is a fundraising expense. Net proceeds flow to the program or general fund. Local gaming/lottery laws must be observed.
Practitioner & Systems Framework
💻 ERP Architecture
Record ticket sales gross. Do not net the prize costs against the revenue. Ensure strict cash handling controls are in place during ticket sales, using pre-numbered tickets to reconcile total cash expected versus cash banked.
⚠️ Audit Flags
Charity raffles are heavily regulated. Auditors verify that the NGO obtained the necessary permits from local authorities. They will reconcile the number of tickets sold against the cash deposited to detect skimming.
📄 Required Documentation
Government charity lottery/raffle permit, pre-numbered ticket log, cash count sheets signed by two individuals, prize purchase receipts, and winner acknowledgment forms.
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