Accounts of clubs and societies

Question 1

What’s a non trading organisation

Answer 1

an organisation formed to provide facilities and services for members.they are not formed with the aim of making a profit

Question 2

What’s a subscription

Answer 2

amount members of an organisation pay,usually,annually to use the facilities provided by the club or society

Question 3

What’s a recipe and payments account

Answer 3

a summary of the cash book which is prepared annually by a non trading organisation

Question 4

Explain why it is necessary for a club or society to prepare a trading section of an income statement as part of the financial statement

Answer 4

If the club or society operates any form of trading (buying and selling) the trading section of an income statement should be prepared for each trading activity to show the profit earned on that activity

Question 5

What’s a income and expenditure account

Answer 5

it is prepared annually by a non trading organisation.it compares the gains and the expenses to calculate the surplus of deficit

Question 6

What’s a surplus

Answer 6

a surplus arises when the gains of a non-trading organisation exceed the expenses

Question 7

what’s a deficit

Answer 7

a deficit arises when the expenses of a non trading organisation exceed the gains

Question 8

explain why a club should set off the expenses of any fund raising activity against the income from that activity

Answer 8

The income and expenses of any fundraising activity should be offset against each other in the income and expenditure account so that the profit or loss on that particular activity can be clearly seen

Question 9

define accumulated fund

Answer 9

The accumulated fund consists of the surpluses which have accumulated over the life of the organisation.it replaces capital in the statement of the financial position of a club or society