Clubs And Societies (Copy)
Cheat Sheet: 5.4 Clubs and Societies
O Level and IGCSE Accounting – Quick Revision
Key Definitions
| Term | Definition |
|---|---|
| Receipts and Payments | Summary of cash and bank transactions (actual receipts and payments) |
| Income and Expenditure | Summary of revenue and expenses (accrual basis) for the financial year |
| Accumulated Fund | Equivalent to capital for a non-profit club; net assets at beginning |
Difference: Receipts & Payments vs. Income & Expenditure
| Feature | Receipts & Payments A/C | Income & Expenditure A/C |
|---|---|---|
| Basis | Cash basis | Accrual basis |
| Opening Balance | Bank/cash balance | No opening balance |
| Includes Capital Items? | Yes | No |
| Balancing Figure | Closing cash/bank balance | Surplus or deficit |
| Adjustments | No | Yes (accruals, prepayments, depreciation) |
Receipts and Payments Account Format
| Receipts | Amount ($) | Payments | Amount ($) |
|---|---|---|---|
| Opening Balance (Bank) | xxxx | Wages and Salaries | xxxx |
| Subscriptions Received | xxxx | Rent Paid | xxxx |
| Donations | xxxx | Electricity | xxxx |
| Income from Events | xxxx | Purchase of Equipment | xxxx |
| Closing Balance (Bank) | xxxx |
Income and Expenditure Account Format
| Expenditure | Amount ($) | Income | Amount ($) |
|---|---|---|---|
| Wages and Salaries | xxxx | Subscriptions (adjusted) | xxxx |
| Rent and Rates | xxxx | Donations | xxxx |
| Printing and Stationery | xxxx | Income from Events | xxxx |
| Depreciation | xxxx | Interest Received | xxxx |
| Surplus / (Deficit) | xxxx |
Subscriptions Account
To calculate subscriptions income on accrual basis:
| Particulars | Amount ($) |
|---|---|
| Subscriptions received | xxxx |
| Add: Outstanding (End of year) | xxxx |
| Less: Outstanding (Beginning) | (xxxx) |
| Less: Prepaid (End of year) | (xxxx) |
| Add: Prepaid (Beginning) | xxxx |
| Total to Income & Expenditure | xxxx |
Revenue-Generating Activities (e.g., Refreshments)
Prepare separate trading account:
| Refreshment Trading Account | |
|---|---|
| Opening Inventory | xxxx |
| Add: Purchases | xxxx |
| Less: Closing Inventory | (xxxx) |
| Cost of Sales | xxxx |
| Add: Gross Profit | xxxx |
| Sales | xxxx |
Transfer Gross Profit to Income & Expenditure A/C as income.
Statement of Financial Position (Balance Sheet)
| Assets | Amount ($) | Liabilities & Fund | Amount ($) |
|---|---|---|---|
| Non-current Assets | xxxx | Accumulated Fund (Opening) | xxxx |
| Inventory (e.g., drinks) | xxxx | Add: Surplus/ (Deficit) | xxxx |
| Receivables (e.g., subs) | xxxx | ||
| Bank and Cash Balances | xxxx | Current Liabilities | xxxx |
Accumulated Fund
To calculate opening accumulated fund:
Accumulated Fund = Total Assets – Total Liabilities
(Taken from the opening Statement of Financial Position)
Adjustments (Same as Sole Traders in 5.1)
Apply:
- Accruals and prepayments
- Depreciation on assets
- Irrecoverable debts
- Provision for doubtful debts
- Goods taken for personal use (if applicable)