What is the accumulated fund of a club?

its capital: assets less liabilities. Each year's surplus is added to it.

income greater than expenditure for the year. The opposite is a deficit.

Which item would appear in a receipts and payments account but not in an income and expenditure account?

the purchase of new equipment. It is capital expenditure, paid in cash.

How are subscriptions paid in advance shown in a club's statement of financial position?

as a current liability. The club owes those members a year of membership.

Subscriptions received are $4000, with $300 owing at the end of the year and no other balances. What is the subscriptions income?

$4300. The amount owing belongs to this year.

Where does the profit of a club's café appear?

as income in the income and expenditure account. The café has its own trading account first.

Clubs and societies · Cambridge IGCSE Accounting revision

In plain words

A sports club or a drama society is not trying to make a profit. It exists for its members. Its accounts follow the same rules as a business's, but with their own names for things.

7 things to know

A receipts and payments account is a summary of the cash book: all the money received and paid in the year, whatever it was for. Its balance is the money in hand.
An income and expenditure account is the club's version of a statement of profit or loss. It includes only the income and expenses that belong to the year, with accruals, prepayments and depreciation, and it leaves out capital items.
The result is a surplus if income is more than expenditure, or a deficit if it is less.
The accumulated fund is the club's version of capital: assets less liabilities. A surplus is added to it and a deficit is deducted.
Subscriptions for the year = amount received − owing at the start + owing at the end + paid in advance at the start − paid in advance at the end.
Subscriptions owing to the club are a current asset. Subscriptions paid in advance are a current liability.
An activity that sells things, such as a café, has its own trading account. Its profit is income in the income and expenditure account.

Worked example

A club received subscriptions of $9600 in the year. At the start of the year $400 was owing and $250 had been paid in advance. At the end of the year $300 was owing and $500 had been paid in advance. Find the subscriptions income for the year.

Take off what belonged to last year: the $400 owing at the start.
Add what was paid last year for this year: the $250 in advance at the start.
Add what is still owed for this year: $300. Take off what was paid for next year: $500.
9600 − 400 + 250 + 300 − 500 = $9250.

Tips and tricks

Surplus and deficit, not profit and loss. Accumulated fund, not capital. Using the business words loses marks.
Buying equipment appears in the receipts and payments account, because money was paid. It does not appear in the income and expenditure account. Only its depreciation does.

6 questions, about 2 minutes.

It lands in your notebook with its questions as flashcards.

Clubs and societies: 6 questions and answers

These are the quiz’s questions. Do the quiz first, then come back here for the ones that got you.

What is the accumulated fund of a club?
- its bank balance
- its capital: assets less liabilities (the answer)
- its total subscriptions
- its surplus for the year
Each year's surplus is added to it.
What is a surplus?
- money in the bank
- income greater than expenditure for the year (the answer)
- expenditure greater than income for the year
- subscriptions paid in advance
The opposite is a deficit.
Which item would appear in a receipts and payments account but not in an income and expenditure account?
- subscriptions for the year
- depreciation
- the purchase of new equipment (the answer)
- wages owing
It is capital expenditure, paid in cash.
How are subscriptions paid in advance shown in a club's statement of financial position?
- as a current asset
- as a current liability (the answer)
- as part of the accumulated fund
- they are not shown
The club owes those members a year of membership.
Subscriptions received are $4000, with $300 owing at the end of the year and no other balances. What is the subscriptions income?
- $3700
- $4000
- $4300 (the answer)
- $300
The amount owing belongs to this year.
Where does the profit of a club's café appear?
- in the receipts and payments account
- as income in the income and expenditure account (the answer)
- as a liability
- in the subscriptions account
The café has its own trading account first.

6 questions

Tap an answer and you’ll see straight away whether it’s right, and why.

Worksheet

3 questions, 7 marks. Write your answers on paper, then check them.

Clubs and societies

Cambridge IGCSE Accounting 0452 · 7 marks · papermunch.org

Name ______________________________ Date ______________

State two differences between a receipts and payments account and an income and expenditure account.[2]
Show answerHide answer
A receipts and payments account records all money received and paid, including capital items, but an income and expenditure account includes only income and expenses for the year. An income and expenditure account includes accruals, prepayments and depreciation, but a receipts and payments account does not.
I got this one
Subscriptions received in the year were $5400. At the end of the year $200 was owing and $350 had been paid in advance for next year. There were no balances at the start. Calculate the subscriptions income.[3]
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$5250. 5400 + 200 − 350.
I got this one
A club has assets of $36 000 and liabilities of $4500. Calculate its accumulated fund.[2]
Show answerHide answer
$31 500. 36 000 − 4500.
I got this one

Answers: Clubs and societies

1. A receipts and payments account records all money received and paid, including capital items, but an income and expenditure account includes only income and expenses for the year. An income and expenditure account includes accruals, prepayments and depreciation, but a receipts and payments account does not.
2. $5250. 5400 + 200 − 350.
3. $31 500. 36 000 − 4500.