FINANCIAL STATEMENTS
• RECEIPTS AND PAYMENTS ACCOUNT
• INCOME AND EXPENDITURE ACCOUNT
• TRADING ACCOUNT SECTION OF THE INCOME
STATEMENT
• STATEMENT OF FINANCIAL POSITION
PREPARATION OF INCOME AND EXPENDITURE
ACCOUNT
• Income and expenditure account compares gains and expenses of running the club
• Gains>Expenses - SURPLUS
• Expenses>Gains -DEFICIT
REMEMBER:
• Adjustments must be made for accruals and prepayments
• Capital receipts and capital expenditure is not included
• Only revenue receipts and revenue expenditure is included
• Non-monetary items such as depreciation is included
• Assets and liabilities at the beginning and at the end of the financial year are
not included
STATEMENT OF FINANCIAL POSITION
• ITS SAME LIKE OTHER BUSINESS SFP
• MAIN DIFFERENCE: NO CAPITAL
• MEMBERS DO NOT INVEST CAPITAL, THUS THEY ARE NOT ENTITLED TO MAKE
ANY DRAWINGS IF CLUB OR SOCIETY MAKES A SURPLUS
• THESE SURPLUSES WILL ACCUMULATE WITHIN THE ORGANISATION TO FORM A
CAPITAL FUND KNOWN AS ACCUMULATED FUND
• IF CLUB OR SOCIETY MAKES A DEFICIT THEN ACCUMULATED FUND WILL
DECREASE
• THIS ACCUMULATED FUND REPLACES CAPITAL IN
THE STATEMENT OF FINANCIAL POSITION OF
CLUB AND SOCIETY
SUBSCRIPTIONS