CLUB ACCOUNTS

CLUB ACCOUNTS

Main Objective To make enough money to cover the

costs of running the activities To use their funds to promote the

interests of their members

COMMITTEE / OFFICE BEARERS

President or Chairperson Oversees the activities of the Club and

chair any meetings which take place Treasurer Responsible for the financial running

of the club Takes care of any accounting duties Deal with all money and bills Collect subscriptions from members Presents the final accounts of the Club

at the AGM

Committee/ Office Bearers

COMMITTEE / OFFICE BEARERS Secretary Deals with all clerical duties eg,

preparing letters, notices and documentation for meeting

HONORARIUM The Treasurer and Secretary

ARE NOT PAID for carrying out their duties but would usually be given a token payment or gift (Honorarium) for services rendered

Sources of Finance

SOURCES OF FINANCE Depends on the type of club or the

amount of finance required.Loans From a bank or other financial

institution Has to be repaid - usually in

instalments – with a variable rate of interest

The finance can be obtained very quickly

Mortgage A large sum of money used to fund a

building – Interest is charged over a long period

of timeSubscriptions Paid annually by club members

allowing them to use the club facilities No repayment required

Sources of Finance

Fund-Raising Events competitions, raffles, discos, etc Increases the INCOME of the club

Donations May be received from club members

or from local businesses They do not need to be paid back.Grants May come from the Local Authority/

National Lottery etc Usually to improve or provide facilities Do not need to be repaid

Why clubs keep records

Stewardship purposes To show revenue raised is used

appropriately To prevent fraud

Executive purposes To enable day to day running of the

club To record all money brought in and

paid out to whom, and for what Keep records of wages paid (for govt)

and stock (for insurance)

Planning & Control Stocks – to meet demand Income – to meet planned

expenditure Decision making regarding services Highlight trends in expenditure

Final Accounts of a Club

RECEIPTS AND PAYMENTS ACCOUNT (Like bank ledger)

Includes the following:The opening cash/bank balanceALL money IN ALL money out whether revenue (bills), or capital (assets) expenditure

Shows the CLOSING CASH/BANK BALANCE (Balance Sheet)

INCOME AND EXPENDITURE ACC Like P&L Acc – deals with WHAT

SHOULD have been paid/ received for the year)

Shows how profitability may be improved

Show a breakdown of the costs and income of the club events such as dances, barbeques etc

Calculates if the club is operating at a Surplus (profit) or Deficit (loss)


INCOME STATEMENT Used to group together the

income and costs or an activity to calculate the surplus or deficit for it

Surplus or Deficit- is transferred to the I&E Acc

BAR TRADING ACCOUNT Required if a club has an activity

which involves operating a bar. Gross Profit/Loss on the bar is

transferred to the income and expenditure account

If barman’s wages have been paid these must also be taken into account and therefore a profit and loss account will also be required


BALANCE SHEET Includes the fixed and current

assets of the club The liabilities of the club,

including any outstanding loans, accruals etc

What the club is worth (i.e its Accumulated Fund)

ACCUMULATED FUND Another name for the Capital calculated as follows: Opening

Acc Fund, Add Surplus or less Deficit

Club Accounts Task 1

The Bluewater Windsurfing Club has provided the following figures for the year ended 31 March 2004.

Select the necessary information and prepare the Bar Trading Account.

Receipts Payments

Subscriptions 4,800 Insurance 780

Sale of Refreshments15,300 Purchase of bar

supplies 7200

Raffle Ticket Sales 2200 Electricity 2500

Stocks

1 April 2003 - £1,800 31 March 2004 - £700

Sale of refreshments 15300

Less COS

OS 1800

+ Purchases 7200

9000

- Closing Stock 700 8300

Profit from bar 7000

Club Accounts Task 1Answer the following questions

Explain the following termsai) Subscriptions 1

This an annual payment members will pay for the privilege of using the clubs facilities

ii) Deficit 1This a term used when the amount of cash coming into the club is LESS than the amount of cash going out of the club

b) What is the term used to describe a clubs net worth 1The Accumulated fund

c) What effect would a surplus have on a club’s net worth 1A surplus would INCREASE the value of a Club’s Net worth

d) Explain the term ‘revenue expenditure 1Revenue Expenditure is the amount of money that is spent on everyday expenses.


d) Explain the term ‘revenue expenditure 1Revenue Expenditure is the amount of money that is spent on everyday expenses.

e) Give two examples of this type of expenditure 2

Paying gas, electricity, heat and light bills. Rent and Rates, Wages, any donations made to c charities.Everything under expenditure in the IE account can be classed as revenue expenditure

f) When preparing the financial statements for a clubs AGM, where should depreciation be shown? 2Depreciation (for this year) is treated as a normal expense and placed in the Expenditure Account and the accumulated amount is deducted from the cost of the asset in the Balance Sheet to show the assets Net Book Value

Club Accounts Task 2On 1 May 2004 the Sarahead Squash and Tennis Club had the following assets:

£Clubhouse 40,000Equipment 7,500Bank 3,200 The clubs receipts and payments for the year ended 30 April 2005 were:

Subscriptions received 10,500Competition entry fees 2,400Competition prizes 1,700Clubhouse repairs 1,800Insurance 2,600Donations received 500Honorarium 600Wages 2,800 Notes1.Insurance prepaid £3002.Wages due £1503.Equipment to be depreciated by 10% pa4.Closing Bank Balance £7,100

From the information shown above prepare:i The income and expenditure Account for the year ended 30 April 2005ii The Balance Sheet as at 30 April 2005

Start of year

Opening Acc fund

During the Year

End of year

Balance sheet

Club Accounts Task 2Notes

Prepayment

Insurance

Original figure 2,600

Less Prepayment 300

2,300 (I&E)

Accrual

Wages

Original figure 2,800

Add accrual 150

2,950 (I&E)

Depreciation

Equipment

Cost 7,500

Depreciation 10% 750 (I&E)


Income Statement 1

Competition Fees 2,400

Less Competition prizes 1,700

700 I&E acc

Sarahead Squash Club I&E Acc for y/e 30/4 05

INCOME

Subscriptions received 10,500

Surplus on competition entries 700

Donations 500

11,700

EXPENDITURE

Clubhouse Repairs 1,800

Insurance 2,300

Honorarium 600

Wages 2,950

Depreciation 750 8400

Surplus 3,300

CLUB ACCOUNTS TASK 2

£ £ £

FIXED ASSETS Cost Dep NBV

Fixed Assets

Clubhouse 40,000 - 40,000

Equipment 7,500 750 6,750

46,750

CURRENT ASSETS

Bank 7,100

Insurance Prepaid 300

7,400

CURRENT LIABILITIES

Wages Due 150 7,250

54,000

Financed By:

Accumulated Fund 50,700

(40,000+7,500+3,200)

Add Surplus 3,300

54,000

SUBSCRIPTIONS PREPAIDAt the START of the year These subscriptions are part of

the current year’s subscriptions We therefore ADD the

subscriptions paid in advance to this year’s subscription amount

At the END of the year (notes at end)

These subscriptions are for the next financial period

We therefore SUBTRACT these subscriptions from this year’s subscription amount

The amount prepaid at the end of the year is treated as a CURRENT LIABILITY in the Balance sheet

This is because the money still belongs to the members until it becomes due

SUBSCRIPTIONS PREPAIDNote ExampleSubs paid during year 200ADD Subs prepaid at start +20

220MINUS Subs prepaid at end -10 (BS CL)

Current Year’s Subs 210 (I&E)

SUBSCRIPTIONS ACCRUEDAt the START of the year These subscriptions were part of

the previous year’s subscriptions We therefore SUBTRACT these

subscriptions from this year’s subscription amount

At the END of the year (in notes) These subscriptions are overdue

for the current financial period We therefore ADD these

subscriptions to this year’s subscription figure

The value of Subscriptions in arrears at the end of the year is treated as a Current Asset in the Balance sheet

The amount is overdue and therefore does belong to club (Similar to debtors)

SUBSCRIPTIONS ACCRUEDNote ExampleSubs paid during the year 350MINUS Subs acrued at start -50

300ADD Subs accrued at end +20 (BS CA)

Current Year’s Subs 320 (I&E)

Club Accounts Task 3The following information relates to the Crowlin Clay Pigeon Shooting Club.Assets and Liabilities as at 1 April 2004

£Premises at Cost 40,000Equipment at Cost 11,000Green keeper’s Wages Due 120Subscriptions paid in advance 500Bank 2,600Insurance Prepaid 90 Receipts and Payments for the year to 31 March 2004 Subscriptions 4,500Greenkeeper’s Wages 3,500Competition entry fees 1,200Electricity 315Insurance 480Sponsorship 1,000Competition trophies/prizes 750Honorarium 250Competition Advertising 150

Start of year

Opening Acc fund

During the Year

Club Accounts Task 3NotesEquipment is to be depreciated by 10% on costInsurance prepaid £45Competition Advertising due £25 Prepare for the year ending 31 March 2004Income Statement for CompetitionIncome and Expenditure Account

Notes

Green keepers wages 3,500

Less amount due at the beginning 120

3,380

Subscriptions

During the year 4,500

Paid in advance at start +500

5,000

Insurance

During the year 480

ADD Paid in advance at start 90

570

LESS paid in advance at end 45

525

End of year


Competition Advertising

During the year 150

Add amount due at the end 25

175

Depreciation

Equipment at cost 11,000

Depreciation 10% -1,100

9,900


Income Statement for competition

Competition Fees 1,200

Less Expenses

Trophies/ Prizes 750

Advertising 175 925

275

I&E Account y/e 30 April 2004

INCOME

Subscriptions received 5,000

Profit on Competition 275

Sponsorship 1,000

6,275

EXPENDITURE

Gamekeepers wages 3,380

Electricity 315

Insurance 525

Honorarium 250

Depreciation 1,100 5,570

Surplus 705


The following information was extracted from the accounts of Moodiesburn Fitness Centre

Assets and Liabilities at 1 May 2003

Premises at cost £7,500

Equipment at cost £3,200

Bank £1,500

Subscriptions due £150

Stock of Refreshments £500

Insurance paid in advance £80

Receipts and Payments for y/e 30 April 2004

Sale of Refreshments £4,200

Purchase of Refreshments £1,815

Subscriptions £4,450

Sale of Raffle Tickets £800

Insurance £450

Heat and Light £660

Instructors Wages £1,200

Raffle Expenses £250

Dance Expenses £425Honorarium £200Dance Ticket Receipts £1,250Purchase of Equipment £1,630

Start of year

Opening Acc fund

During the Year


Notes

• Stock of Refreshments on 30 April 2004 £410

• Heating and Lighting due on 30 April 2004 £140

• All equipment is to be depreciated by 10% on cost

Prepare for the year ended 30 April 2004

1. Refreshments Trading Account

2. Income and Expenditure Account End of Year


Insurance

During the year 450

Add prepayment at start 80

530

Heating & Lighting

During the year 660

Add amount due at the end 140

800

Depreciation

Equipment at cost 4,830

Depreciation 10% -483

3347


Bar Trading Account

Sales 4,200

Less Cost of Sales

Opening stock 500

Add purchases 1815

2315

Less closing stock 410 1905

2295

Income Statement for Raffle

Raffle ticket receipts 800

Less Raffle Expenses -250

550

Income Statement for Dance

Dance tickets 1,250

Less dance expenses -425

825

Club Accounts Task 4Income & Expenditure Acc 30/4 2004

INCOME

Subscriptions received 4.300

Profit from raffle 550

Profit from dance 825

Profit from bar 2295

7,970

EXPENDITURE

Insurance 530

Heating & Lighting 800

Instructors Wages 1,200

Honorarium 200

Depreciation 483 3,213

Surplus 4,757


Depreciation

Machinery at start (cost) 102,000

Machinery purchased during yr 30,000

New cost of machinery 132,000

Depreciation for yr 25% (I&E) 33,000

Add Existing Depreciation 22,000

Total Depreciation (BS) 55,000

Net book value 77,000

Accrual

Wages paid to course staff 263,000

Add amount owing (BS) 21,700

(I&E) 284,700


Subscriptions

Amount received 300,000

Add accrued at end (BS/CA) 5,000

(I&E) 305,000

General Expenses

Total 37,500

1/5 Bar 7,500

I&E 30,000


Profit Statement for Bar £ £

Bar Sales 77,000

Less: Cost of Sales

Opening Stock 3,800

Purchases 38,300

42,100

Less: Closing Stock 4,100 38,000

Gross Profit 39,000

Bar Wages 10,000

General Expenses 7,500 17,500

Net Profit 21,500


Income and Expenditure A/c for Oldmarchar Golf course for the year ended 31 December Year 2

£ £

Income

Subs received 305,000

Profit on bar 21,500

Visitor income 53,800

380,300

Expenditure

General Expenses 30,000

Competition prizes 2,600

Course Staff Wages 284,700

Depreciation 33,000 350,300

Surplus 30,000


Accumulated FundClubhouse 150,000 Machinery 80,000Bar stocks 3,800 Bank 6,735 Acc Fund 240,535

CLUB ACCOUNTS TASK 8

Balance Sheet of Oldmarchar Golf Club as at 31 December Year 2

£ £ £

Fixed Assets Cost Dep NBV

Clubhouse 150,000

Machinery 132,000 55,000 77,000

227,000

Current Assets:

Bar Stocks 4,100

Subscriptions due 5,000

Bank 56,135

65,235

Less: Current Liabilities

Wages due 21,700 21,700 43,535

270,535

Financed By:

Accumulated Fund 240,535

Add: Surplus 30,000

270,535

LIFE MEMBERSHIP FEESA member may pay a lump sum

once and then have life membership of the club

These fees can be dealt with by:a) Transferring the money paid to a

Life Membership Acc with a financial institution (bank, building society etc)

Any interest earned on this account will be treated as annual income in the final accounts.

ORb) Estimating how many years on

average that a life member is likely to use the club (eg 10)

Every year 1/10 of the lump sum PLUS interest would be transferred from the Life Membership account to the I&E Acc

As long as there is a balance in the Life Membership Acc it is shown in the Balance sheet as a Long Term Liability - it is like a payment received in advance

Additional source of financeLEVY This is an amount paid by

members of the club for an agreed purpose

It is usually an annual payment

Example – School staff pay an annual levy of £5 to the social fund so that flowers can be sent to members of staff who have been bereaved or have a long term of sickness

Club AccountsPARKLEA SOCIAL CLUB

a) Accumulated fund 1/1/11

£000 £000

Premises 80

Fittings 11

Bar Stock 3

Debtors 2

Subs in Arrears 1

Cash and Bank 5 102

LESS

Subs in Advance 3

Creditors (bar supplies) 4

Electricity accrued 1 -8

Acc Fund at 1/1/11 94

Club Accounts Parklea Social Club

Notes

Social function

Social function receipts 30

- debtors at beginning (1/1) 2

28

+ debtors at end (31/12) 3

Social function receipts 31

Creditors / Purchases (Bar Supplies)

Payment to creditors

during the year 130

Less creditors at start 4

126

Add creditors at end 5

Creditors/purchases for yr 131 Bar T


Notes

ACCRUALS

Electricity 3

- accrual at beg (1/1) 1

Electricity for year 2

Salary for Bar Steward 22

+ 1 month = (22/11) 2

Salary for year 24

PREPAYMENTS

Insurance 4

- prepayment at end 1

Insurance for year 3


Notes

Depreciation

Fitting at start (1/1) 11

+ Purchase of Fittings 5

16

Fittings at revaluation 10

Difference = Depreciation 6 I/E & BS


b (i) Net profit from bar

£ £

Bar Sales 180

Less: Cost of Sales

Opening Stock 3

Purchases (see note) 131134

Less: Closing Stock 5 129

Gross Profit 51

Less Expenses

Bar stewards salary (see note)24

Profit on bar 27 (I/E)

Club AccountsParklea Social Club

b ii) Net Profit from social functions

£ £

Receipts (see note) 31

-purchases for social functions 16

Gross profit 15

Less Expenses

Staff wages for Social function 6

Net profit from Social function 9


b (iii)

Subscriptions

Received 20

- Subs in arrears at start 1

19

+ Subs Prepaid at start 3

22

+ Subs in Arrears at end 4

26

- Subs in advance at end 2

Subs for year (I/E) 24

Club AccountsParklea Social club

c)Income and Expenditure A/c for the Parklea social club for year ended 31 December 11

£ £

Income

Net profit from bar 27

NP from social functions 9

Subs 24

Raffle ticket sales 5 65

Expenditure

Insurance 3

Electricity 2

Secretary’s Honorarium 2

Admin expenses 8

Raffle Expenses 3

Depreciation (see note) 6 24

Surplus 41

Club Accounts Task 12(H)Notes

Accumulated fund 1/1/Year 2

Fittings 6,000

Stock 300

Cash/Bank 200

Prepaid 60

Sub in Arrears 180 6,740

LESS

Subs in Advance 150

Creditors 350

Staff wages accrued 120 -620

Acc Fund at 1/1/Y2 6,120

Closing Bank Balance

Bank at 1/1/Y2 200

Add Receipts 33,750

33,950

Less Payments 31,730

Bank Balance 31/12/ Y2 2,220

Club Accounts Task 12 (H)Notes

Subscriptions

Received 6,500

+ subs in adv at beginning (1/1) 150

6,650

- Subs accrued at beginning (1/1) 180

6,470

- Subs in Advance at end (31/12) 200 CL/ BS

6,270

+Subs accrued at end (31/12) 100 CA/BS

Subs for year (I/E) 6,370 I&E

Accruals

Staff wages 4,000

Less accrual at beg (1/1) 120

3,880

Add Accrual at end (1/1) 150 CL - BS

Staff wages for year 4,030 P&L Bar

Club Accounts Task 12(H)Notes

Prepayments

General Expenses 1,500

+ prepayment at beg (1/1) 60

1,560

- Prepayment at end (31/12) 30 C/A BS

General Expenses for year 1,530 I&E

Creditors / Purchases

Payment for refreshments

during the year 8,400

Less outstanding at start -350

8,050

Add creditors at end 420 C/L BS

Creditors/purchases for yr 8,470 TPL for bar


Depreciation

Fitting at start (1/1) (NBV) 6,000

+ Purchase of Fittings 4,500

10,500

Fittings at end 31/12 (NBV) 9,000

Difference = Depreciation 1,500 I/E & BS

Club Accounts Task 12 (H)

Profit Statement for Refreshments

£ £

Sales 12,000

Less: Cost of Sales

Opening Stock 300

Purchases (see note) 8,4708,770

Less: Closing Stock 280 8,490

Gross Profit 3,510

Less Expenses

Staff wages (see note) 4,030

Loss on sale of refreshments (520) (I/E)

Club Accounts Task 12(H)

Profit/Loss from Annual Dance

£ £

Sale of dance tickets 3,000

Less annual Dance Expenses380

Profit on Dance 2, 620 (I&E)

Profit/Loss from Raffle

£ £

Sale of raffle tickets 2,500

Less Raffle expenses 1,800

Profit on Raffle 700 (I&E)

Profit/Loss from Gaming Machine

£ £

Gaming machine takings 8,750

Less Gaming machine rental3,000

Profit on Gaming Machine 5, 750 (I&E)

Club Accounts Task 12 (H)

Income and Expenditure A/c for year ended 31 December Year 2

£ £

Income

Subscriptions 6,370

Profit from Dance 2,620

Profit from Raffle 700

Profit -Gaming Machine 5,750 15,440

Expenditure

Rent of club premises 6,000

Light & Heat 1,850

Insurance 300

General Exp (see note) 1,530

Loss - refreshments 520

Depreciation (see note) 1,500 11,700

Surplus 3,740

Club Accounts Task 12 (H)Balance Sheet as at 31 December Year 2

£ £ £

Fixed Assets Cost Dep NBV

Fittings (see note) 9,000

Current Assets:

Closing stock refreshments 280

Subscriptions due 100

Prepayments 30

Bank (Note) 2,220

2,630

Less: Current Liabilities

Creditors 420

Subs in advance 200

Accruals 150 770 1,860

Net Current assets10,860

Financed By:

Accumulated Fund (note) 6,120

Entrance fees (added to capital) 1,000

Surplus 3,740 10,860


Check Accumulated Fund 31 Dec Y2

Fittings 9,000

Stock 280

Cash/Bank 2,220

Prepaid 30

Sub in Arrears 100

11,630

LESS

Subs in Advance 200

Creditors 420

Staff wages accrued 150 -770

Acc Fund at 1/1/Y2 10,860


Accumulated fund 1/1/Year 11

Cash At bank 5,000

Clubhouse 100,000

Clubhouse fittings 30,000

Electricity prepaid 1,000

Restaurant Stocks 12,000

Restaurant Fittings 10,000

Subs in arrears 2,000

Tennis Equipment 3,000 163,000

LESS

Loan from Building Society 80,000

Loan interest due 3,000

Creditors 5,000

Subs in advance 3,000 91,000

Acc Fund at 1/1/Y11 72,000


Cash at bank end of yr 11

Bank at 1/1/Y11 5,000

Add Receipts 149,000

154,000

Less Payments 131,000

Cash at bank 31/12/ Y11 23,000

Clubhouse Fittings (Dep)

Worth at start of year 30,000 Cost – BS

Depreciation 10% on NBV 3,000 I& E Acc

Existing depreciation 0

Total Depreciation 3,000 Dep - BS

NBV end of year 27,000 NBV – BS

Resaurant Fittings (Dep)

Worth at start of year 10,000 Cost – BS

Depreciation 10% on NBV 1,000 I& E Acc

Existing depreciation 0

Total Depreciation 1,000 Dep - BS

NBV end of year 9,000 NBV – BS

Club Accounts Task 13(H)NotesLoan from Building Society

Loan Received 80

- Repayment 20

Amount still outstanding 60 BS/ FB

Electricity

Paid during the year 7

+ Amount prepaid at start 18

- Amount prepaid at end 2 CA/BS

6 I&E

Loan Interest


- Amount due at start 32 I&

+ Amount due at end 2 CL/BS

4 I&E


Restaurant purchases

Purchases during yr 30

- Creditors at start 5

25

+ Creditors at end 4 CL - BS

29 Rest TPL

Subscriptions


+ Paid in advance at start 3

73

-Arrears at start 2

71

-Paid in advance at end 4 CL - BS

67

+ Arrears at end 5 CA - BS

72

25% to be capitalised 18

54 I&E

-



Profit Statement for Refreshments

£ £

Sales 12,000

Less: Cost of Sales

Opening Stock 300

Purchases (see note) 8,4708,770

Less: Closing Stock 280 8,490

Gross Profit 3,510

Less Expenses

Staff wages (see note) 4,030

Loss on sale of refreshments (520) (I/E)


Profit/Loss from Annual Dance

£ £

Sale of dance tickets 3,000

Less annual Dance Expenses380

Profit on Dance 2, 620 (I&E)

Profit/Loss from Raffle

£ £

Sale of raffle tickets 2,500

Less Raffle expenses 1,800

Profit on Raffle 700 (I&E)

Profit/Loss from Gaming Machine

£ £

Gaming machine takings 8,750

Less Gaming machine rental3,000

Profit on Gaming Machine 5, 750 (I&E)

Documents

CLUB ACCOUNTS