Re: [SL] Gift Vouchers

[Roy N. <RNi...@NB...>]

I agree ... making you own 'money' is definitely a better idea than  
gift vouchers ... for those in Canada, look no further than Canadian  
Tire - the old Scot on the store's money is probably just as  
recognised as any of the PMs on the National currency.

Issuing this type of 'currency' is similar to issuing a debt note  
(i.e. bonds), but without the interest.  You record the redemption  
value (face value) of the issued certificates (bills) as a liability  
against the company.  As this money is taken out of circulation, you  
retire the dept against the company (if you choose not to re- 
circulate the bills/certificates).

Roy


>
> Transferring un-redeemed G.V.s from the liability account to income
> may (will) attract tax.  (The taxman always wants his due.)
>
> An aside on the issues of G.V.s and tracking same.  You may want to
> track outside of the accounting system redemption may range over
> fiscal years and become difficult to track.  A simple method is to
> have a serially numbered multi-part form (duplicate or triplicate)
> with a stiffer, fancier first sheet for the "amount" and a validating
> name or initial (it is "cash") to be added at the time of sale with
> the purchaser filling in the "name" and "from"at their leisure.  A
> second copy with or w/o the sales receipt number on it is added to
> the day's cash receipts (establishing an audit trail ) the duplicate
> G.V.is for tracking and anti-fraud -alteration purposes.
>
> An alternative G.V.is to use read-made selected denomination
> certificates, but I prefer the former for several reasons (can
> discuss offline)
>
> Hope this helps.
>
> Cheers,
>