Club Accounts Theory

Question 1

Name six accounts of a club

Answer 1

1. Analysed Receipts and Payments book
2. Receipts and Payments account
3. Income and Expenditure
4. Statement of Accumulated Fund
5. Special Purpose profit and loss account.
6. Balance Sheet

Question 2

Explain purpose of the Analysed Receipts and Payments book.

Answer 2

Records day to day receipts and payments of an organisation. Overall totals are transferred to receipts and payments account.

Question 3

Explain purpose of the Receipts and payments account

Answer 3

Summary of the organisation’s daily receipts and payments of cash. Information is taken from the analysed receipts and payments book

Question 4

Explain purpose of the Income expenditure account

Answer 4

Shows difference between income and expenditure for financial period.
Must take into account ACTUAL income and expenditure for the year
Must be adjusted for any amounts due and prepaid

Question 5

What does accrual mean

Answer 5

Amounts due (adjustment)

Question 6

Explain purpose of the Accumulated Fund

Answer 6

Shows list of assets less the liabilities at beginning of financial period.

Question 7

Explain purpose of the Special Purpose profit and loss account

Answer 7

Account prepared for activities carried out to make a profit. ex: Bar/ Lotto
Expenses and income for this activity are entered into account then transferred into I&E account

Question 8

Explain purpose of the Balance sheet

Answer 8

Shows assets and liabilities of club at the end of financial period

Question 9

Explain Life membership and where it goes as a special club receipt

Answer 9

Treated as liability in Balance sheet. (life member will use clubs facility for more than year)
Normally written off to I&E as income over a stated number of years

Question 10

Explain Entrance fee and where it goes as a special club receipt

Answer 10

May be payable as well as subscriptions for new members

May be treated as income in year of receipt or treated as a capital receipt in the Accumulated Fund/Balance sheet

Question 11

Explain Levies and where it goes as a special club receipt

Answer 11

Payment made to club by members to fund a special project ex. extension
Must be used for specific purpose it was collected for
Due to members until it is used so is liability on the B.S

Question 12

Explain Sponsorship and where it goes as a special club receipt

Answer 12

Main sources of income for clubs

Income in the I&E account in year of receipt

Question 13

Explain Donations, Gifts, Winnings, annual grants and where it goes as a special club receipt

Answer 13

Small (less that 5% of total income) - Income in I&E in year of receipts

large (more than 5% of total income) - treated as capital receipts and entered into the balance sheet as addition to accumulated fund

Question 14

Is Expense due Liability or asset in the accumulated fund

Answer 14

Liability

Question 15

Is Income due Liability or asset in the accumulated fund

Answer 15

Asset

Question 16

Is Expense prepaid Liability or asset in the accumulated fund

Answer 16

Asset

Question 17

Is Income prepaid Liability or asset in the accumulated fund

Answer 17

Liability

Question 18

Is Expense due Liability or asset in the Balance sheet

Answer 18

Liability

Question 19

Is Expense prepaid Liability or asset in the Balance sheet

Answer 19

Asset

Question 20

Is Income due Liability or asset in the Balance sheet

Answer 20

Asset

Question 21

Is Income prepaid Liability or asset in the Balance sheet

Answer 21

Liability