Club Accounts

Contents:

1) What is a Club?......................................................................................... 3

2) The Officers of a Club ............................................................................... 3

3) Analysed Cash Books ................................................................................ 4

4) Receipts and Payments Accounts ............................................................. 5

5) Income and Expenditure Accounts ........................................................... 6

6) Statement of Accumulated Fund .............................................................. 7

7) Club Trading Account ............................................................................... 8

8) Club Balance Sheet ................................................................................... 9

9) Past and Probable Exam Questions ........................................................ 10

10) Solutions .............................................................................................. 17

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1) What is a Club?

A club is a non-profit making organisation or association that is set up for the benefit of its
members.
You may be part of a Soccer club or a Gaelic club. As a member you are entitled to attend the
AGM (Annual General Meeting) of the club. Every week or year you pay subscriptions or
membership fees, which are used to help run the club. Just like any organisation, it is
important that a club is run smoothly and efficiently. There are 3 officers in a club who
ensure the efficient running of the club.

2) The Officers of a Club

1. Chairperson.
• The chairperson is responsible for the overall running of the club.
• They chair meetings e.g. AGM and make sure these meetings run smoothly.
• They ensure the club follows any laws that are applicable to them.

2. Secretary
• The secretary is usually responsible for the communication in a club.
• They send out the notice and agendas for any meetings
• They write up the minutes of each meeting.
• They organise the venues for future meetings.

3. Treasurer
• The treasurer is responsible for the finances of a club.
• They collect subscriptions from members and issue receipts.
• They prepare financial reports that will be presented to members at the
AGM.
• They prepare final accounts and Balance Sheets.
• They record all receipts and payments and ensure all money is lodged to the
club’s bank account.

It is very common for the examiner to ask you to explain the roles of the officers of a club, so
you must know them.

Most marks in Club Account questions are awarded for the preparation of the actual
accounts. It varies every year which ones will be asked. It can be difficult to predict so
therefore you should know them all.

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3) Analysed Cash Book

An analysed cash book is basically a T account of all the money received and spent by the club.
It is in effect a bank account and is sometimes referred to an Analysed Receipts and Payments
Account.

Remember: the debit side of the cash book is used to record money coming into the club.
The credit side of the cash book is used to record money going out of the club.

Examples of money coming into a club are subscriptions, bar sales, sponsorship, lotto, disco
receipts.
Examples of money leaving the club are bar purchases, dance payments, insurance, repairs,
light and heat, travel costs and competition fees.

Note: if you are asked to prepare an Analysed Cash Book the analysis columns will be given to
you. Also there will usually be an opening balance at the start of the year. Record it on the
debit side if they have money in the bank and on the credit side if they have an overdraft.

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4) Receipts and Payments Accounts

This is a record of a club’s receipts and payments made during a particular period. It is basically
a summary of the analysed cash book during the period. It is a record of all money received and
paid.

There are a number of things you must remember when preparing Receipts and Payments
Accounts. They are:
• It is always prepared in a T account format.
• Receipts (money coming in) are always entered on the debit side.
• Payments (money going out) are always entered on the credit side.
• You must include opening balances.
• Do not include adjustments. These are additional information that the examiner will
give you, but they are not entered in the Receipts and Payments Account.
• Make sure you include a title.

A Receipts and Payments Account should look like this:

Receipts and Payments A/c for year ending 31/12/2009

Opening Cash 14,000Light &Heat 1,680
Subs 8,700 Equipment 15,600
Regatta entry fee 19,360General Expenses 3,460
Annual Sponsorship 850 Regatta Expenses 8,220
Club lotto 2,750 Insurance 1,870
Balance c/d 14,830
45,660 ` 45,660
Balance b/d 14,830

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5) Income and Expenditure Accounts

This is basically a summary of the income and expenditure of the club. It differs from a
Receipts and Payments Account (all money received and paid is entered) in that we only
record items that actually relate to the period, so we must include amounts due and
prepayments. These items are the adjustments we referred to early.

This is what you need to know when preparing Income and Expenditure Accounts:
• Make sure you include a title.
• Prepare like a National Budget.
• Do not include opening or closing bank balances.
• Do not include the purchase or sale of assets.
• Indicate if there is an excess income over expenditure or vice versa.
• Do include adjustments i.e. prepayments, dues, depreciation.

The Income and Expenditure Account should look like:

Income and Expenditure A/c for Knockbrack Mountaineering for year ending 30/04/2012

Income € € €
Canteen Profit 6121
Subscriptions 2418
Less Prepaid 180 2238
Raffle Income 3786
Flag Day Collection 1959 14104

Expenditure
Insurance 2714
Rent 1275
Less Prepaid 350 925
Travel Expenses 1688
Telephone 493
Add Due 84 577
Depreciation of Equipment 510 6414
Excess Income over Expenditure 7690

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6) Statement of Accumulated Fund

The Accumulated Fund is the capital of the club. It is the money the members put into the
club to when it is forming. It is very similar to the capital that shareholders put into a
company.
In order to calculate it, you simply add the assets of the club (what they own) and the
liabilities (what they owe) at the start of the year and take them away.

A Statement of Accumulated Fund should look like this:

Statement of Accumulated fund for Boyne Valley Angling Club

€
Assets
Boats 30,000
Clubhouse 200,000
Cash 2500
232,500

Liabilities
Long Term loan 40,000
Accumulated Fund 192,500

Remember, just add up the assets and liabilities at the start of the year, take them away and this
will give you the figure for Accumulated Fund.
If you are asked to prepare a Balance Sheet, the capital will be replaced by Accumulated
Fund.

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7) Club Trading Account

Many clubs will run a bar, shop or restaurant in their club. They do this as it’s usually a good
way to obtain valuable funds for the running of the club. We prepare a Club Trading Account in
exactly the same way as a Trading Account for a business. The Account will tell us if the club
made a profit in the bar, shop etc. If they made a profit you must enter it in the income section
of the Income and Expenditure Account, and if they made a loss, enter it in the expenditure
section.

A Club Trading Account will look like this:

Canteen Trading Account for Knockbrack Mountaineering Club for year ending 30/04/2012

Canteen Sales €8193

Less cost of Sales
Opening Stock 0
Canteen Purchases €2647
€2647
Less Closing Stock €575
Cost of Sales €2072
Canteen Profit €6121

The Canteen Profit of €6121 will now be entered in the Income and Expenditure Account. There

are usually only 4 entries: Sales, Purchases, Opening Stock and Closing Stock.

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8) Club Balance Sheet

The Balance Sheet is prepared in the same way as one for a business. It is a statement of
assets and liabilities of a club, and where it got the money to finance it. The only difference is
that share capital is replaced by Accumulated Fund.

The 4 sections of the Balance Sheet are the same:

• Fixed Assets – land, buildings, vehicles.
• Current Assets – cash, closing stock expenses prepaid etc.
• Current Liabilities – bank overdraft, expenses due etc.
• Financed By – Accumulated Fund, excess Income over Expenditure.

The Balance Sheet for a club should look like this:

Balance Sheet of St. Josephs Boys as at 30/04/2012

Fixed Assets Cost Depreciation Net Book Value

Clubhouse 364,000 10,920 353,080
Equipment 80,000 12,000 68,000
444,000 22,920 421,080

Current Assets
Closing stock of stationery 170
Cash 7,840
8,010

Current Liabilities
Subs prepaid 1,600
Light & Heat due 290 1,890
Working Capital 6,120
Total Net assets 427,200

Financed By
Accumulated Fund 411,210
Excess Income over Expenditure 15,990
Capital Employed 427,200

Make sure you include the Title.

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9) Past and Probable exam Questions

Q. 1

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Q. 2

(6)

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Q. 3
Answer all parts of this Question:

(40 marks)

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Q. 4
Answer all parts of this Question:

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Q. 5
Answer all parts of this Question:

(40marks)

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Q. 6
Answer all parts of this question:

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Q. 7
Answer all parts to this Question:

(40 marks)

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Solutions
Q 1)

Q 1. This is a Club Account Question

(A) Statement of accumulated fund for KJ Rugby Club on 01/01/2013

€
Assets
Minibus 45,000
Clubhouse 440,000
Cash 6,100
491,100

Liabilities
Long Term loan 66,000
Accumulated Fund 425,100

(B)
(i) Receipts and Payments A/c for year ending 31/12/2013
Opening Cash 6,100 Equipment 24,000
Subs 16,300Tag Expenses 4,260
Tag entry fee 8,470 Light & Heat 1,890
Annual Sponsorship 2,300 Insurance 3,780
Club lotto 4,450 General Expenses 3,140
Balance c/d 550
37,620 ` 37,620
Balance b/d 550

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Income and Expenditure Account for the year ending 31/12/2013

€ € €
Income
Subs 16,300
Less prepaid 400 15,900
Tag Entry fees 8,470
Less Expenses 4,260 4,210
Annual Sponsorship 2,300
Club lotto 4,450 26,860

Expenditure
Light & heat 1,890
Add L&H due 190 2,080
General Expenses 3,140
Insurance 3,780
Less insurance prepaid 530 3,250
Depreciation:
Equipment 3,600
Mini-­­bus 9,000 12,600 21,070
Excess of Income 5,790

(C) Two assets: Clubhouse and Mini-­bus

Liability: Long term loan

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Q 2)

A
(i). Shop Trading Account of Rock Boxing Club for year ending 31/12/2012

€ € €
Shop Sales 4,750
Less cost of Sales
Opening Stock 1,300
Add Shop Purchases 2,900
4,200
Less Closing Shop Stock 900
3,300
Shop Profit 1,450

(ii)

Income and Expenditure Account of Rock Boxing Club for year ending 31/12/2012

€ € €
Income
Shop Profit 1,450
Tug of war Income 3,670
-­­Tug of war Expenditure 1,590 2,080
Annual Sponsorship 5,200
Club Lotto Sales 5,900
-­­Club Lotto Expenses 4,830 1,070
Subscriptions 7,960
-­­Subs Prepaid 140 7,820 17,620

Expenditure
Repairs to fixtures 920
Insurance 6,720
-­­Insurance Prepaid 840 5,880
Light & Heat 3,625
+Light & Heat due 325 3,950
Sundry Expenses 5,320
Depreciation of Equipment 1,260 17,330
Excess Income over Expenditure 290

(B)
(i) The Treasurer
(ii) Grant. They good look for a grant from the Government or National Lottery. This
would be a good source as it is non-­­repayable.

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Q. 3)

Income and Expenditure Account of Linn Swimming Club for year ended 31/12/2012.

Income
Competition Receipts 12,600
Less Comp Expenses 4,225 8,375
Subscriptions 6,600
Less prepaid 350 6,250
Sponsorship 9,700
24,325
Less Expenditure
Affiliation Expenses 600
Stationery 740
Less on hand 120 620
General Expenses 520
Add Gen Expenses Due 65 585
Insurance 10,220
Pool Rent 9,000
Depreciation:
Laptop 290
Equipment 3,600 3,890 24,915
Excess Expenditure over Income

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Balance Sheet of Linn Swimming Club as at 31/12/2012

Fixed Assets Cost Depreciation Net Book Value

Equipment 24,000 3,600 20,400
Laptop 1,160 290 870
25,160 3,890 21,270

Current Assets
Closing stock of stationery 120
Cash 520
640

Current Liabilities
Subs prepaid 350
General Exps due 65 415
Working Capital 225
Total Net assets 21,495

Financed By
Accumulated Fund 22085
Excess Expenditure (590)
Funds Employed 21495

(B)
Two duties of the club treasurer:
• Collects subscriptions and lodges them to the club bank account.
• Prepares the clubs final accounts.

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Q. 4)

(A) (i)
Shop Trading Account of Park Hockey Club for the year ending 31 December 2010.
€ €
Shop Sales 14,300
Less cost of sales
Opening Stock 5,900
Add shop purchases 9,850
15,750
Less Closing Stock 8,120 7,630
Shop Profit 6,670

Income and Expenditure Account of Park Hockey Club for year ending 31/12/2010
Income € € €
Shop Profit 6,670
Club Lotto 22,400
Less lotto expenses 16,220 6,180
Competition fees 6,100
Less competition prizes 4,900 1,200
Subscriptions 17,800
Add subs due 700 18,500
Annual Sponsorship 3,500 36,050
Expenditure
General Expenses 5,600
General expenses due 325 5,925
Light + Heat 6,850
Pitch Maintenance 4,300
Insurance 8,970
Less prepaid 1,495 7,475
Depreciation of equipment 1,110 25,660
Excess Income 10,390

(B)
(i) The treasurer.
(ii)
• Income and Expenditure account
• The clubs Balance Sheet
• Financial plans and projections.

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Q. 5)

(A) Statement of accumulated fund for Bulben Sailing Club

€
Assets
Yachts 110,000
Clubhouse 320,000
Cash 14,000
444,000

Liabilities
Long Term loan 128,500
Accumulated Fund 315,500

(B)
(i) Receipts and Payments A/c for year ending 31/12/2009
Opening Cash 14,000Light &Heat 1,680
Subs 8,700 Equipment 15,600
Regatta entry fee 19,360General Expenses 3,460 Annual
Sponsorship 850 Regatta Expenses 8,220
2,750 Insurance 1,870
Balance c/d 14,830
45,660 ` 45,660
14,830

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Income and Expenditure Account for the year ending 31/12/2009

€ € €
Income
Subs 8,700
Less prepaid 600 8,100
Regatta Entry fees 19,360
Less Expenses 8,220 11,140
Annual Sponsorship 850
Club lotto 2,750 22,840

Expenditure
Light & heat 1,680
Add L&H due 210 1,890
General Expenses 3,460
Insurance 1,870
Less insurance prepaid 160 1,710
Depreciation Equipment 2,340
Depreciation Yachts 11,000 20,400
Excess of Income 2,440

(C) Two assets: Yachts and Clubhouse

Liability: Long term loan

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Q. 6)

Income and Expenditure Account for year ended 30th April 2009

Income
Gate Receipts 23,940
Subscriptions 34,100
Less prepaid 1,600 32,500
Club Lotto 53,700
110,140

Less Expenditure
Maintenance Expenses 3,780
Stationery 1,730
Less on hand 170 1,560
General Expenses 34,610
Club lotto prizes 19,400
Insurance 9,330
Light & Heat 2,260
Add due 290 2,550
Depreciation:
Clubhouse 10,920
Equipment 12,000 94,150
Excess Income over Expenditure 15,990

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Balance Sheet as at 30/04/2009

Fixed Assets Cost Depreciation Net Book Value

Clubhouse 364,000 10,920 353,080
Equipment 80,000 12,000 68,000
444,000 22,920 421,080

Current Assets
Closing stock of stationery 170
Cash 7,840
8,010

Current Liabilities
Subs prepaid 1,600
Light & Heat due 290 1,890
Working Capital 6,120
Total Net assets 427,200

Financed By
Accumulated Fund 411,210
Excess Income over Expenditure 15,990
Capital Employed 427,200

(B) (i) Depreciation is the decrease in value of a fixed asset.

(ii) Wear and Tear, usage, age

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Q. 7)

A
i. Bar Trading Account for year ending 30/04/08

€ € €
Bar Sales 47,600
Less cost of Sales
Opening Stock 12,000
Add Bar Purchases 30,960
42,960
Less Closing Bar Stock 14,400
28,560
Bar Profit 19,040

(ii)

Income and Expenditure Account for year ending 30/04/08

€ € €
Income
Bar Profit 19,040
Club Lotto 24,400
Subs 52,000
Less Subs prepaid 2,500 49,500
92,940

Expenditure
Groundsmans Wages 22,100
Light & Heat 5,960
+ Due 345 6,305
Insurance 11,200
Less prepaid 2,800 8,400
Club Lotto Prizes 8,140
Telephone 1,655
Repairs & Maintenance 17,895
Depreciation of Tractor 5,000
69,495
Excess Income over Expenditure 23,445

(B)
i. Treasurer
ii. Gross Profit Percentage

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 Gross Profit X 100 = 19040
Sales 1 47600

= 40%
(iii) To suggest ways to raise finances
To allow members to enquire about the finances of the club.

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