1. Clubs and Societies

2. The accounts of non-profit making organisations
They are organisations that provide facilities to their members. For example, sports clubs, social clubs, amateur dramatics societies, etc.

3. These organisations may receive income
in the form of:
Membership fees or annual subscriptions
Donations
Funds raised from raffles, fetes, etc.
Revenue from the sale of food and drink to members

4. The money raised is used to meet running expenses, such as rent, light and heat, etc.
Clubs, associations and other non-profit making organisations do not have trading profit and loss accounts as their main purpose is not trading or profit making.

5. New terms used in the accounts of clubs and societies
An income and expenditure account is prepared in place of a profit and loss account.
Surplus of income over expenditure is used in place of net profit.
Excess of expenditure over income is used in place on net loss.
Accumulated fund is used in place of the capital account.
Receipts and payments account summarises all the transactions that have passed through the bank account.

6. Profit or loss for a special purpose
When an event is organised to raise money to supplement the income of the organisation, for example a golf club organising a dinner dance.
Profits are transferred to the income and expenditure account as income, e.g. profit on bar, disco, etc.

7. The following information is available for the McKinnon Tennis Club for the year ended 31 December 2007
Subscriptions 8,000
Dinner dance ,200
Bar receipts 16,300
Balance b/d 600
Dinner dance cost 1,900
Wages bar staff 6,200
Maintenance ,000
Heat and light ,300
Bar purchases 4,800
General expenses 2,500
The following information is also available: £ £
1/1/07 31/12/07
Heat & light accrued
Bar stock 2,500 2,100
Creditors’ bar purchases 1,
Subs due and unpaid
Subs paid in advance 1,
Equipment 9,400 7,600
1) Bar staff salaries are the only expenses in the bar trading account.
Prepare:
The Bar trading account for the year ended 31 December 2007.
The income and expenditure account for the year ended 31 December
The balance sheet as at 31 December 2007.

8. McKinnon Bar trading account for the year ended 31 December 2007
£ £
Sales 16,300
Opening stock 2,500
Purchases (4, ) 4,200
6,700
Closing stock 2,100
4,600
Gross profit 11,700
Less bar staff salaries 6,200
Bar profit 5,500

9. To calculate the subscriptions we will need to draw
Dr Subscriptions account Cr
Balance b/d 200
Balance c/d 900
Balance b/d 1,500
Bank 8,000
Balance c/d 400
If we balance the account we can find the subscriptions that relate to the year ended 31 December 2007.

10. Balance b/d 200 Income & exp 8,800 Balance c/d 900 9,900
Dr Subscriptions account Cr
Balance b/d 200
Income & exp 8,800
Balance c/d 900
9,900
Balance b/d 1,500
Bank 8,000
Balance c/d 400
9,900

11. McKinnon income and expenditure account for the year ended 31 December 2007
Subscriptions 8,800
Profit from bar 5,500
Profit from dinner dance 1,300
15,600
Expenses
Heat & light ( ) 1,260
Maintenance 3,000
General expenses 2,500
Depreciation – equipment 1,800
8,560
Surplus of income over expenditure 7,040

12. Balance sheet as at 31 December 2007
Fixed assets
Equipment 7,600
Current assets
Stock 2,100
Bank 7,200
Subs in arrears 400
9,700
Current liabilities
Creditors 800
Accruals – heat & light 160
Subs in advance 900
1,860
Working capital 7,840
15,440
Financed by:
Accumulated fund 8,400
Plus surplus of income over expenditure 7,040

13. Tips
Different terms are used - marks are awarded for the use of different terms.
You will probably have to calculate the value of subscriptions, using a ‘T’ will help.
A specific subscriptions account may be required.
Net values where there is income and expenditure for the same activity.

14. Tasks
Complete task sheet and OCR exam question.