Reporting Negative Net Receipts

A game is removed from play with unsold tickets remaining. 

$2,000 Ideal gross receipts (if all tickets were sold)
 -  500   Unsold tickets
$ 1,500 Actual gross receipts 

Audit the game and count all the redeemed winning tickets.
 $ 1,700  Actual value of prizes paid (total value) 

In this case, the organization awarded more for prizes than what it made in gross receipts, resulting in negative net receipts. 

$ 1,500 Actual gross receipts
- 1,700  Actual value of prizes paid
 $ (200) Negative net receipts 

Report ($200) under “Net receipts” — on Schedule B2. 

A game is begun with a $300 starting cash bank. When the game is removed from play only $50 remains in the cash drawer. 

$50 Actual cash left in drawer
- 300 Starting cash bank
$(250) Negative cash in hand 

Report $(250) under “Cash in hand” — on Schedule B2.

The difference between net receipts and cash in hand is the amount reported as cash long or cash short. 

$(250) Cash in hand
 - (200) Net receipts
 $(50) Cash short 

The organization has $50 less (cash in hand) than it should have, based on the count of the tickets (net receipts)—so it is $50 cash short. 

Report $(50) under “Cash long/(short)” — on Schedule B2.

The following examples of games with negative net receipts show how these games should be reported.

1. To determine the amount of cash in hand, subtract the starting cash bank amount from the cash remaining at the end of the game.
   
   $138 cash remaining at end of game
   - 500 starting cash bank
   $(362) cash in hand 
   
   
2. Report a negative ($362) in the Cash in Hand column on the Schedule B2. 
   
   
3. To determine the cash long or short, if any, subtract the net receipts from the cash in hand.
   
   $(362) cash in hand
     (362) net receipts
   $0 no cash long or short 
   
   
4. Report the game on Schedule B2 as follows:
   
   

   Ideal Gross Receipts	Ideal Prizes	Value of Unsold Tickets	Gross Receipts	Value of Prizes Paid	Net Receipts	Cash in Hand	Cash Long / Short
   2,800	2,240	1,094	1,706	2,068	(362)	(362)	0

   
   
   
5. To replenish the starting cash bank to $500 for the next game, write a $362 check from the gambling account. In the memo field, write “Replenish game bank” and the game’s serial number.

1.  To determine the amount of cash in hand, subtract the starting cash bank amount from the cash remaining at the end of the game.
   
   $152 cash remaining at end of game
    - 500 starting cash bank
   $(348) cash in hand 
   
   
2. Report a negative ($348) in Cash in Hand column on the Schedule B2. 
   
   
3. To determine the cash long or short, if any, subtract the net receipts from the cash in hand.
   $(348) cash in hand
   - (362) net receipts
   $14 cash long 
   
   
4. Report the game on Schedule B2 as follows:
   
   

   Ideal Gross Receipts	Ideal Prizes	Value of Unsold Tickets	Gross Receipts	Value of Prizes Paid	Net Receipts	Cash in Hand	Cash Long / Short
   2,800	2,240	1,094	1,706	2,068	(362)	(348)	14

   
   
   
5. To replenish the starting cash bank to $500 for the next game, write a $348 check from the gambling account. In the memo field, write “Replenish game bank” and the game’s serial number.

1. To determine the amount of cash in hand, subtract the starting cash bank amount from the cash remaining at the end of the game.
   $111 cash remaining at end of game
   - 500 starting cash bank
   $(362) cash in hand 
   
   
2. Report a negative ($389) in the Cash in Hand column on the Schedule B2. 
   
   
3. To determine the cash long or short, if any, subtract the net receipts from the cash in hand.
   $(389) cash in hand
   - (362) net receipts
   $ (27) cash short 
   
   
4. Report the game on Schedule B2 as follows:
   
   

   Ideal Gross Receipts	Ideal Prizes	Value of Unsold Tickets	Gross Receipts	Value of Prizes Paid	Net Receipts	Cash in Hand	Cash Long / Short
   2,800	2,240	1,094	1,706	2,068	(362)	(389)	(27)

   
   
   
5. To replenish the starting cash bank to $500 for the next game, write a $389 check from the gambling account. In the memo field, write “Replenish game bank” and the game’s serial number.