Club & Society Accounts 🤝

Examples: Sports Clubs, Recreation Clubs, Residents Welfare Associations (RWA), Libraries.

Nature: These are Non-Trading Institutions (Not for profit).

Documents Required 📄

1. Registration Certificate: Under Societies Registration Act (if registered).
2. Bye-Laws / Rules: Constitution of the club (defines objectives, membership).
3. Resolution: Passed by the Managing Committee to open account.
4. List of Office Bearers: President, Secretary, Treasurer.

Operational Rules ⚖️

1. Authorized Signatories ✍️

• Usually President, Secretary, and Treasurer (Jointly or Any Two).
• Defined in the Resolution.

2. Borrowing Powers 💰

• Strict Rule: Clubs usually DO NOT have power to borrow (unless Bye-laws specifically allow).
• Bankers are very careful giving loans to clubs (Members are not personally liable).

3. Death/Resignation 🔄

• If Secretary/Treasurer changes, operations don't stop.
• New Committee passes resolution to appoint new signatories.

4. Cheques 🛑

• Cheques payable to Club must go to Club account (Not to Secretary's personal account).
• Risk: Conversion.

Quiz Time! 🎯

💡 Final Wisdom: "Clubs are for fun, but their banking is serious business. Check the Bye-laws before lending a penny!" 📜

Next up: Other Non-Trading Institutions - Trusts & Executors! 🛡️