1 / 60

CLUB ACCOUNTS

CLUB ACCOUNTS. Main Objective To make enough money to cover the costs of running the activities To use their funds to promote the interests of their members COMMITTEE / OFFICE BEARERS President or Chairperson Oversees the activities of the Club and chair any meetings which take place

idola-wilkinson
Download Presentation

CLUB ACCOUNTS

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. CLUB ACCOUNTS Main Objective • To make enough money to cover the costs of running the activities • To use their funds to promote the interests of their members COMMITTEE / OFFICE BEARERS President or Chairperson • Oversees the activities of the Club and chair any meetings which take place Treasurer • Responsible for the financial running of the club • Takes careof any accounting duties • Deal with all money and bills • Collect subscriptions from members • Presents the final accounts of the Club at the AGM

  2. Committee/ Office Bearers COMMITTEE / OFFICE BEARERS Secretary • Deals with all clerical duties eg, preparing letters, notices and documentation for meeting HONORARIUM • The Treasurer and Secretary ARE NOT PAID for carrying out their duties but would usually be given a token payment or gift (Honorarium) for services rendered

  3. Sources of Finance SOURCES OF FINANCE •  Depends on the type of club or the amount of finance required. Loans • From a bank or other financial institution • Has to be repaid - usually in instalments – with a variable rate of interest • The finance can be obtained very quickly Mortgage • A large sum of money used to fund a building – • Interest is charged over a long period of time Subscriptions • Paid annually by club members allowing them to use the club facilities • No repayment required

  4. Sources of Finance Fund-Raising Events • competitions, raffles, discos, etc • Increases the INCOME of the club Donations • May be received from club members or from local businesses • They do not need to be paid back. Grants • May come from the Local Authority/ National Lottery etc • Usually to improve or provide facilities • Do not need to be repaid

  5. Why clubs keep records Stewardship purposes • To show revenue raised is used appropriately • To prevent fraud Executive purposes • To enable day to day running of the club • To record all money brought in and paid out to whom, and for what • Keep records of wages paid (for govt) and stock (for insurance) Planning & Control • Stocks – to meet demand • Income – to meet planned expenditure • Decision making regarding services • Highlight trends in expenditure

  6. Final Accounts of a Club RECEIPTS AND PAYMENTS ACCOUNT (Like bank ledger) • Includes the following: The opening cash/bank balance ALL money IN ALL money out whether revenue (bills), or capital (assets) expenditure         • Shows the CLOSING CASH/BANK BALANCE (Balance Sheet) INCOME AND EXPENDITURE ACC • Like P&L Acc – deals with WHAT SHOULD have been paid/ received for the year)   • Shows how profitability may be improved • Show a breakdown of the costs and income of the club events such as dances, barbeques etc • Calculates if the club is operating at a Surplus (profit) or Deficit (loss)

  7. Final Accounts of a Club INCOME STATEMENT • Used to group together the income and costs or an activity to calculate the surplus or deficit for it • Surplus or Deficit- is transferred to the I&E Acc  BAR TRADING ACCOUNT • Required if a club has an activity which involves operating a bar. • Gross Profit/Loss on the bar is transferred to the income and expenditure account • If barman’s wages have been paid these must also be taken into account and therefore a profit and loss account will also be required

  8. Final Accounts of a Club BALANCE SHEET • Includes the fixed and current assets of the club • The liabilities of the club, including any outstanding loans, accruals etc • What the club is worth (i.e its Accumulated Fund) ACCUMULATED FUND • Another name for the Capital • calculated as follows: Opening Acc Fund, Add Surplus or less Deficit

  9. Club Accounts Task 1 The Bluewater Windsurfing Club has provided the following figures for the year ended 31 March 2004. Select the necessary information and prepare the Bar Trading Account. Receipts Payments Subscriptions 4,800 Insurance 780 Sale of Refreshments 15,300 Purchase of bar supplies 7200 Raffle Ticket Sales 2200 Electricity 2500 Stocks 1 April 2003 - £1,80031 March 2004 - £700 a a a a

  10. Club Accounts Task 1 Answer the following questions Explain the following terms ai) Subscriptions 1 This an annual payment members will pay for the privilege of using the clubs facilities ii) Deficit 1 This a term used when the amount of cash coming into the club is LESS than the amount of cash going out of the club b) What is the term used to describe a clubs net worth 1 The Accumulated fund c) What effect would a surplus have on a club’s net worth 1 A surplus would INCREASE the value of a Club’s Net worth d) Explain the term ‘revenue expenditure 1 Revenue Expenditure is the amount of money that is spent on everyday expenses.

  11. Club Accounts Task 1 d) Explain the term ‘revenue expenditure 1 Revenue Expenditure is the amount of money that is spent on everyday expenses. e) Give two examples of this type of expenditure 2 ¨Paying gas, electricity, heat and light bills. Rent and Rates, Wages, any donations made to c charities. Everything under expenditure in the IE account can be classed as revenue expenditure f) When preparing the financial statements for a clubs AGM, where should depreciation be shown? 2 Depreciation (for this year) is treated as a normal expense and placed in the Expenditure Account and the accumulated amount is deducted from the cost of the asset in the Balance Sheet to show the assets Net Book Value

  12. Balance sheet Club Accounts Task 2 Start of year Opening Acc fund On 1 May 2004 the Sarahead Squash and Tennis Club had the following assets: £ Clubhouse 40,000 Equipment 7,500 Bank 3,200 The clubs receipts and payments for the year ended 30 April 2005 were: Subscriptions received 10,500 Competition entry fees 2,400 Competition prizes 1,700 Clubhouse repairs 1,800 Insurance 2,600 Donations received 500 Honorarium 600 Wages 2,800 Notes • Insurance prepaid £300 • Wages due £150 • Equipment to be depreciated by 10% pa • Closing Bank Balance £7,100 From the information shown above prepare: i The income and expenditure Account for the year ended 30 April 2005 ii The Balance Sheet as at 30 April 2005 During the Year End of year

  13. Club Accounts Task 2 Notes Prepayment Insurance Original figure 2,600 Less Prepayment 300 2,300 (I&E) Accrual Wages Original figure 2,800 Add accrual 150 2,950 (I&E) Depreciation Equipment Cost 7,500 Depreciation 10% 750 (I&E)

  14. Club Accounts Task 2 Income Statement 1 Competition Fees 2,400 Less Competition prizes 1,700 700 I&E acc Sarahead Squash Club I&E Acc for y/e 30/4 05 INCOME Subscriptions received 10,500 Surplus on competition entries 700 Donations 500 11,700 EXPENDITURE Clubhouse Repairs 1,800 Insurance 2,300 Honorarium 600 Wages 2,950 Depreciation 7508400 Surplus 3,300

  15. £ £ £ FIXED ASSETS Cost Dep NBV Fixed Assets Clubhouse 40,000 - 40,000 Equipment 7,500 750 6,750   46,750 CURRENT ASSETS Bank 7,100 Insurance Prepaid 300 7,400 CURRENT LIABILITIES Wages Due 150 7,250 54,000 Financed By: Accumulated Fund 50,700 (40,000+7,500+3,200) Add Surplus 3,300 54,000 CLUB ACCOUNTS TASK 2

  16. SUBSCRIPTIONS PREPAID At the START of the year • These subscriptions are part of the current year’s subscriptions • We therefore ADD the subscriptions paid in advance to this year’s subscription amount At the END of the year (notes at end) • These subscriptions are for the next financial period • We therefore SUBTRACT these subscriptions from this year’s subscription amount • The amount prepaid at the end of the year is treated as a CURRENT LIABILITY in the Balance sheet • This is because the money still belongs to the members until it becomes due

  17. SUBSCRIPTIONS PREPAID NoteExample Subs paid during year 200 ADD Subs prepaid at start +20 220 MINUS Subs prepaid at end -10 (BS CL) Current Year’s Subs 210 (I&E)

  18. SUBSCRIPTIONS ACCRUED At the START of the year • These subscriptions were part of the previous year’s subscriptions • We therefore SUBTRACT these subscriptions from this year’s subscription amount At the END of the year (in notes) • These subscriptions are overdue for the current financial period • We therefore ADD these subscriptions to this year’s subscription figure • The value of Subscriptions in arrears at the end of the year is treated as a Current Asset in the Balance sheet • The amount is overdue and therefore does belong to club (Similar to debtors)

  19. SUBSCRIPTIONS ACCRUED NoteExample Subs paid during the year 350 MINUS Subs acrued at start -50 300 ADD Subs accrued at end +20 (BS CA) Current Year’s Subs 320 (I&E)

  20. Club Accounts Task 3 Start of year Opening Acc fund The following information relates to the Crowlin Clay Pigeon Shooting Club. Assets and Liabilities as at 1 April 2004 £ Premises at Cost 40,000 Equipment at Cost 11,000 Green keeper’s Wages Due 120 Subscriptions paid in advance 500 Bank 2,600 Insurance Prepaid 90 Receipts and Payments for the year to 31 March 2004 Subscriptions 4,500 Greenkeeper’s Wages 3,500 Competition entry fees 1,200 Electricity 315 Insurance 480 Sponsorship 1,000 Competition trophies/prizes 750 Honorarium 250 Competition Advertising 150 During the Year

  21. Club Accounts Task 3 End of year Notes • Equipment is to be depreciated by 10% on cost • Insurance prepaid £45 • Competition Advertising due £25 Prepare for the year ending 31 March 2004 Income Statement for Competition Income and Expenditure Account Notes Green keepers wages 3,500 Less amount due at the beginning 120 3,380 Subscriptions During the year 4,500 Paid in advance at start +500 5,000 Insurance During the year 480 ADD Paid in advance at start 90 570 LESS paid in advance at end 45 525

  22. Club Accounts Task 3 Notes Competition Advertising During the year 150 Add amount due at the end 25 175 Depreciation Equipment at cost 11,000 Depreciation 10% -1,100 9,900

  23. Club Accounts Task 3 Income Statement for competition Competition Fees 1,200 Less Expenses Trophies/ Prizes 750 Advertising 175925 275 I&E Account y/e 30 April 2004 INCOME Subscriptions received 5,000 Profit on Competition 275 Sponsorship 1,000 6,275 EXPENDITURE Gamekeepers wages 3,380 Electricity315 Insurance 525 Honorarium 250 Depreciation 1,1005,570 Surplus705

  24. Club Accounts Task 4 Start of year Opening Acc fund The following information was extracted from the accounts of Moodiesburn Fitness Centre Assets and Liabilities at 1 May 2003 Premises at cost £7,500 Equipment at cost £3,200 Bank £1,500 Subscriptions due £150 Stock of Refreshments £500 Insurance paid in advance £80  Receipts and Payments for y/e 30 April 2004 Sale of Refreshments £4,200 Purchase of Refreshments £1,815 Subscriptions £4,450 Sale of Raffle Tickets £800 Insurance £450 Heat and Light £660 Instructors Wages £1,200 Raffle Expenses £250 Dance Expenses £425 Honorarium £200 Dance Ticket Receipts £1,250 Purchase of Equipment £1,630 During the Year

  25. Club Accounts Task 4 Notes • Stock of Refreshments on 30 April 2004 £410 • Heating and Lighting due on 30 April 2004 £140 • All equipment is to be depreciated by 10% on cost Prepare for the year ended 30 April 2004 •  Refreshments Trading Account • Income and Expenditure Account End of Year

  26. Club Accounts Task 4 Notes Insurance During the year 450 Add prepayment at start 80 530 Heating & Lighting During the year 660 Add amount due at the end 140 800 Depreciation Equipment at cost 4,830 Depreciation 10% -483 3347

  27. Bar Trading Account Sales 4,200 Less Cost of Sales Opening stock 500 Add purchases 1815 2315 Less closing stock 4101905 2295 Income Statement for Raffle Raffle ticket receipts 800 Less Raffle Expenses -250 550 Income Statement for Dance Dance tickets 1,250 Less dance expenses -425 825 Club Accounts Task 4

  28. Income & Expenditure Acc 30/4 2004 INCOME Subscriptions received 4.300 Profit from raffle 550 Profit from dance 825 Profit from bar 2295 7,970 EXPENDITURE Insurance 530 Heating & Lighting 800 Instructors Wages 1,200 Honorarium 200 Depreciation 483 3,213 Surplus 4,757 Club Accounts Task 4

  29. Club Accounts Task 8 Notes Depreciation Machinery at start (cost) 102,000 Machinery purchased during yr 30,000 New cost of machinery 132,000 Depreciation for yr 25% (I&E) 33,000 Add Existing Depreciation 22,000 Total Depreciation (BS)55,000 Net book value 77,000 Accrual Wages paid to course staff 263,000 Add amount owing (BS) 21,700 (I&E) 284,700

  30. Club Accounts Task 8 Notes Subscriptions Amount received 300,000 Add accrued at end (BS/CA)5,000 (I&E) 305,000 General Expenses Total 37,500 1/5 Bar 7,500 I&E 30,000

  31. Profit Statement for Bar £ £ Bar Sales 77,000 Less: Cost of Sales Opening Stock 3,800 Purchases 38,300 42,100 Less: Closing Stock 4,10038,000 Gross Profit 39,000 Bar Wages 10,000 General Expenses 7,50017,500 Net Profit 21,500 Club Accounts Task 8

  32. Income and Expenditure A/c for Oldmarchar Golf course for the year ended 31 December Year 2 £ £ Income Subs received 305,000 Profit on bar 21,500 Visitor income 53,800 380,300 Expenditure General Expenses 30,000 Competition prizes 2,600 Course Staff Wages 284,700 Depreciation 33,000350,300 Surplus 30,000 Club Accounts Task 8

  33. Accumulated Fund Clubhouse 150,000 Machinery 80,000 Bar stocks 3,800 Bank 6,735 Acc Fund 240,535 Club Accounts Task 8

  34. Balance Sheet of Oldmarchar Golf Club as at 31 December Year 2 £ £ £ Fixed Assets Cost Dep NBV Clubhouse 150,000 Machinery 132,000 55,000 77,000 227,000 Current Assets: Bar Stocks 4,100 Subscriptions due 5,000 Bank 56,135 65,235 Less: Current Liabilities Wages due 21,700 21,70043,535 270,535 Financed By: Accumulated Fund 240,535 Add: Surplus 30,000270,535 CLUB ACCOUNTS TASK 8

  35. LIFE MEMBERSHIP FEES A member may pay a lump sum once and then have life membership of the club These fees can be dealt with by: a) Transferring the money paid to a Life Membership Acc with a financial institution (bank, building society etc) Any interest earned on this account will be treated as annual income in the final accounts. OR b) Estimating how many years on average that a life member is likely to use the club (eg 10) Every year 1/10 of the lump sum PLUS interest would be transferred from the Life Membership account to the I&E Acc As long as there is a balance in the Life Membership Acc it is shown in the Balance sheet as a Long Term Liability - it is like a payment received in advance

  36. Additional source of finance LEVY • This is an amount paid by members of the club for an agreed purpose • It is usually an annual payment • Example – School staff pay an annual levy of £5 to the social fund so that flowers can be sent to members of staff who have been bereaved or have a long term of sickness

  37. Club Accounts PARKLEA SOCIAL CLUB a) Accumulated fund 1/1/11 £000 £000 Premises 80 Fittings 11 Bar Stock 3 Debtors 2 Subs in Arrears 1 Cash and Bank5 102 LESS Subs in Advance 3 Creditors (bar supplies) 4 Electricity accrued 1 -8 Acc Fund at 1/1/11 94

  38. Club Accounts Parklea Social Club Notes Social function Social function receipts 30 - debtors at beginning (1/1) 2 28 + debtors at end (31/12) 3 Social function receipts 31 Creditors / Purchases (Bar Supplies) Payment to creditors during the year 130 Less creditors at start 4 126 Add creditors at end 5 Creditors/purchases for yr 131 Bar T

  39. Club Accounts Parklea Social Club Notes ACCRUALS Electricity 3 - accrual at beg (1/1) 1 Electricity for year2 Salary for Bar Steward 22 + 1 month = (22/11) 2 Salary for year 24 PREPAYMENTS Insurance 4 - prepayment at end 1 Insurance for year 3

  40. Club Accounts Parklea Social Club Notes Depreciation Fitting at start (1/1) 11 + Purchase of Fittings 5 16 Fittings at revaluation 10 Difference = Depreciation 6 I/E & BS

  41. Club Accounts Parklea Social Club b (i) Net profit from bar £ £ Bar Sales 180 Less: Cost of Sales Opening Stock 3 Purchases (see note) 131 134 Less: Closing Stock 5129 Gross Profit 51 Less Expenses Bar stewards salary (see note) 24 Profit on bar 27 (I/E)

  42. Club AccountsParklea Social Club • b ii) Net Profit from social functions • £ £ • Receipts (see note) 31 • purchases for social functions 16 • Gross profit 15 • Less Expenses • Staff wages for Social function 6 • Net profit from Social function 9

  43. Club Accounts Parklea Social Club b (iii) Subscriptions Received 20 - Subs in arrears at start 1 19 + Subs Prepaid at start 3 22 + Subs in Arrears at end 4 26 - Subs in advance at end 2 Subs for year (I/E) 24

  44. Club AccountsParklea Social club c) Income and Expenditure A/c for the Parklea social club for year ended 31 December 11 £ £ Income Net profit from bar 27 NP from social functions 9 Subs 24 Raffle ticket sales5 65 Expenditure Insurance 3 Electricity 2 Secretary’s Honorarium 2 Admin expenses 8 Raffle Expenses 3 Depreciation (see note) 624 Surplus 41

  45. Club Accounts Task 12(H) Notes Accumulated fund 1/1/Year 2 Fittings 6,000 Stock 300 Cash/Bank 200 Prepaid 60 Sub in Arrears 1806,740 LESS Subs in Advance 150 Creditors 350 Staff wages accrued 120 -620 Acc Fund at 1/1/Y2 6,120 Closing Bank Balance Bank at 1/1/Y2 200 Add Receipts 33,750 33,950 Less Payments 31,730 Bank Balance 31/12/ Y2 2,220

  46. Club Accounts Task 12 (H) Notes Subscriptions Received 6,500 + subs in adv at beginning (1/1) 150 6,650 - Subs accrued at beginning (1/1) 180 6,470 - Subs in Advance at end (31/12) 200 CL/ BS 6,270 +Subs accrued at end (31/12) 100 CA/BS Subs for year (I/E) 6,370 I&E Accruals Staff wages 4,000 Less accrual at beg (1/1) 120 3,880 Add Accrual at end (1/1) 150 CL - BS Staff wages for year 4,030 P&L Bar

  47. Club Accounts Task 12(H) Notes Prepayments General Expenses 1,500 + prepayment at beg (1/1) 60 1,560 - Prepayment at end (31/12) 30 C/A BS General Expenses for year 1,530 I&E Creditors / Purchases Payment for refreshments during the year 8,400 Less outstanding at start -350 8,050 Add creditors at end 420 C/L BS Creditors/purchases for yr 8,470 TPL for bar

  48. Club Accounts Task 12 (H) Notes Depreciation Fitting at start (1/1) (NBV) 6,000 + Purchase of Fittings 4,500 10,500 Fittings at end 31/12 (NBV) 9,000 Difference = Depreciation 1,500 I/E & BS

  49. Profit Statement for Refreshments £ £ Sales 12,000 Less: Cost of Sales Opening Stock 300 Purchases (see note) 8,470 8,770 Less: Closing Stock 2808,490 Gross Profit 3,510 Less Expenses Staff wages (see note) 4,030 Loss on sale of refreshments (520) (I/E) Club Accounts Task 12 (H)

  50. Profit/Loss from Annual Dance £ £ Sale of dance tickets 3,000 Less annual Dance Expenses 380 Profit on Dance 2, 620 (I&E) Profit/Loss from Raffle £ £ Sale of raffle tickets 2,500 Less Raffle expenses 1,800 Profit on Raffle 700 (I&E) Profit/Loss from Gaming Machine £ £ Gaming machine takings 8,750 Less Gaming machine rental 3,000 Profit on Gaming Machine 5, 750 (I&E) Club Accounts Task 12(H)

More Related