Club Accounts Flashcards

1
Q

What is a levy & how is it treated in the accounts?

A

levy - payment made to a club by its members to fund a special project such as a clubhouse extension. It must be used for the purpose for which it is collected

• capital receipt - credited to reserve fund
• due to members, long term liability in balance sheet

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2
Q

What is a life membership & how is it treated in the accounts?

A

Life membership - club member pays a fee that entitles them to use the facilities of the club for the rest of their life

• long term liability in balance sheet, can be written off as income over stated number of years

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3
Q

What are subscriptions & how are they treated in the accounts?

A

Subscriptions - fee paid each year by the members to the club for the day to day running of the club
- income & expenditure account

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4
Q

What is meant by a special purpose profit and loss account?

A

Sometimes non-profit making organisations such as a club prepare a profit and loss account for activities that are carried out to make profit
For example, bar / restaurant

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5
Q

What is a receipts and payments account?

A

The cash book of a club which shows the opening cash/bank balance, all money coming in and going out, and the closing cash/bank balance, must be recorded by club treasurer

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6
Q

What are the limitations of a receipts and payments account?

A
  • it does not shows whether the club is raising enough funds to cover its running costs
  • it does not take into account losses such as depreciation
  • it does not show whether the club bar/restaurant if profitable
  • it does not distinguish between receipts for the current year and other years
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7
Q

What are the differences between the income and expenditure account and the receipts and payments account?

A
  • the income and expenditure account does not show any activities that are not normal day to day club activities e.g. purchase of fixed asset
  • figures entered into the income and expenditure account must take account of all prepayments and amounts due
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8
Q

What are the duties of a Club Treasurer?

A
  • collections of subscriptions and other outstanding funds
  • making payments for day to day running costs
  • ## making regular lodgements to bank
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9
Q

What advice would you give to the club treasurer to improve financial position?

A

• catering/lotto would need to be looked at, it should not be maintained if making a loss
• the bank balance of € could be invested in a special terms deposit account to yield a greater return

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