Clubs and societies Worksheet

A receipts and payments account is a summary of all cash and bank transactions of a club or society for a specific period. It records all receipts (money coming in) and payments (money going out). Mark allocation: 1 mark for definition, 1 mark for explanation.

The purpose of an income and expenditure account is to show the surplus or deficit of a club or society for a specific period. It records all income and expenditure on an accruals basis, matching income with the period it relates to and expenses with the period they are incurred. Mark allocation: 1 mark for purpose, 1 mark for explanation of accruals basis.

Two examples of revenue-generating activities are: 1. Refreshments 2. Subscriptions Mark allocation: 1 mark per correct example.

The accumulated fund is the total surplus of income over expenditure that a club or society has built up over time. It represents the financial strength of the club or society and can be used to finance future activities or investments. Mark allocation: 1 mark for definition, 1 mark for explanation.

Two adjustments that need to be made are: 1. Accrued and prepaid expenses 2. Accrued and prepaid income Mark allocation: 1 mark per correct adjustment.

Greenfield Sports Club Receipts and Payments Account for the year ended 31 December 2023 Receipts Subscriptions received: £12,000 Refreshment sales: £8,500 Total Receipts: £20,500 Payments Rent paid: £3,000 Equipment purchased: £2,500 Salaries paid: £7,000 Bank charges: £200 Total Payments: £12,700 Excess of Receipts over Payments: £7,800 Mark allocation: 1 mark for correct layout, 1 mark for correct totals, 1 mark for correct calculation of excess, 1 mark for accuracy.

Blue Sky Art Society Income and Expenditure Account for the year ended 30 June 2024 Income Subscriptions: £1,500 Refreshment sales: £6,000 Total Income: £7,500 Expenditure Rent: £1,200 Refreshment supplies: £800 Total Expenditure: £2,000 Surplus: £5,500 Mark allocation: 1 mark for correct layout, 1 mark for correct totals, 1 mark for correct calculation of surplus, 1 mark for accuracy.

Sunrise Book Club Income and Expenditure Account for the year ended 31 March 2024 Income Subscriptions: £1,800 Refreshment sales: £4,500 Total Income: £6,300 Expenditure Rent: £1,200 Refreshment supplies: £600 Total Expenditure: £1,800 Surplus: £4,500 Mark allocation: 1 mark for correct layout, 1 mark for correct totals, 1 mark for correct calculation of surplus, 1 mark for correct adjustments for subscriptions, 1 mark for correct adjustments for rent, 1 mark for accuracy.

Star Gazers Astronomy Club Statement of Financial Position as at 31 December 2023 Assets Non-current assets: £10,000 Current assets Cash at bank: £5,000 Subscriptions receivable: £1,200 Total Current Assets: £6,200 Total Assets: £16,200 Liabilities Current liabilities Refreshment supplies payable: £600 Rent payable: £900 Total Current Liabilities: £1,500 Net Assets: £14,700 Financed by: Accumulated fund: £12,000 Surplus for the year: £2,700 Total Financed: £14,700 Mark allocation: 1 mark for correct layout, 1 mark for correct classification of assets and liabilities, 1 mark for correct calculation of net assets, 1 mark for correct calculation of surplus for the year, 1 mark for accuracy, 1 mark for correct presentation of accumulated fund and surplus.

A receipts and payments account is a summary of all cash and bank transactions of a club or society for a specific period. It records all receipts (money coming in) and payments (money going out) on a cash basis, meaning it only records transactions when cash is actually received or paid. An income and expenditure account, on the other hand, is prepared on an accruals basis. This means it records income when it is earned and expenses when they are incurred, regardless of when cash is received or paid. It shows the surplus or deficit of a club or society for a specific period. It is important for clubs and societies to prepare both accounts because they serve different purposes. The receipts and payments account provides a clear picture of the cash position of the club or society, which is crucial for managing day-to-day finances. The income and expenditure account, however, provides a more accurate measure of the financial performance of the club or society over a period of time, as it takes into account all income earned and expenses incurred, not just those that involved cash transactions. Mark allocation: 2 marks for explanation of receipts and payments account, 2 marks for explanation of income and expenditure account, 2 marks for explanation of importance of preparing both.

Greenfield Sports Club Receipts and Payments Account for the year ended 31 December 2023 Receipts Subscriptions received: £12,000 Refreshment sales: £8,500 Total Receipts: £20,500 Payments Rent paid: £3,000 Equipment purchased: £2,500 Salaries paid: £7,000 Bank charges: £200 Total Payments: £12,700 Excess of Receipts over Payments: £7,800 Greenfield Sports Club Income and Expenditure Account for the year ended 31 December 2023 Income Subscriptions: £12,000 Refreshment sales: £8,500 Total Income: £20,500 Expenditure Rent: £3,000 Salaries: £7,000 Bank charges: £200 Total Expenditure: £10,200 Surplus: £10,300 Greenfield Sports Club Statement of Financial Position as at 31 December 2023 Assets Non-current assets: £15,000 Current assets Cash at bank: £10,000 Total Current Assets: £10,000 Total Assets: £25,000 Liabilities Current liabilities Rent payable: £1,000 Total Current Liabilities: £1,000 Net Assets: £24,000 Financed by: Accumulated fund: £13,700 Surplus for the year: £10,300 Total Financed: £24,000 Analysis: The Greenfield Sports Club has a surplus of £10,300 for the year ended 31 December 2023. This is a positive sign, indicating that the club's income exceeds its expenditure. The club also has a healthy accumulated fund of £13,700, which provides a financial cushion for future activities or investments. However, the club could consider the following recommendations to improve its financial performance: 1. Increase revenue-generating activities: The club could explore additional sources of income, such as organising more events or offering new services to its members. This would not only increase the club's income but also enhance its member experience. 2. Control costs: While the club's expenditure is currently under control, it could benefit from regularly reviewing its expenses to identify areas where costs can be reduced. For example, the club could negotiate better rates with its suppliers or explore more cost-effective ways of delivering its services. Mark allocation: 2 marks for analysis of financial statements, 2 marks for first recommendation, 2 marks for second recommendation.

Blue Sky Art Society Income and Expenditure Account for the year ended 30 June 2024 Income Subscriptions: £2,500 Refreshment sales: £6,000 Total Income: £8,500 Expenditure Rent: £1,700 Refreshment supplies: £800 Total Expenditure: £2,500 Surplus: £6,000 Blue Sky Art Society Statement of Financial Position as at 30 June 2024 Assets Non-current assets: £14,000 Current assets Subscriptions receivable: £1,500 Cash at bank: £5,000 Total Current Assets: £6,500 Total Assets: £20,500 Liabilities Current liabilities Rent payable: £700 Total Current Liabilities: £700 Net Assets: £19,800 Financed by: Accumulated fund: £14,000 Surplus for the year: £6,000 Total Financed: £19,800 Accumulated fund at the end of the year: £14,000 Mark allocation: 1 mark for correct layout of income and expenditure account, 1 mark for correct totals, 1 mark for correct calculation of surplus, 1 mark for correct layout of statement of financial position, 1 mark for correct classification of assets and liabilities, 1 mark for correct calculation of net assets, 1 mark for correct calculation of accumulated fund at the end of the year, 1 mark for accuracy, 1 mark for correct presentation of accumulated fund and surplus.