By S.K Chik

1
Income and expenditure account

• By S.K Chik

2
Club Accounts

• The accounts and statement are made for clubs,
  societies, associations and similar non-profit
  making organizations
• They usually produce the following accounting
  records
• Receipts and Payments Account
• Separate Trading Account( s )
• Income and Expenditure Account

3
Receipts and Payment Account

• A summary of the cash book
• All statements are drafted from reviewing the
  transactions in this account

4
(No Transcript)
5
Separate Trading Account( s )

• When there is any activities that are making
  profit, a separate Trading and profit loss
  accounts should be made
• E.g. Bar trading, Annual dinner, etc

6
(No Transcript)
7

• Usually and purchases and sales are not given
• You need to calculate them from the Debtors and
  Creditors account
• Remember to sum up the amount of Credit
  purchases/sales with Cash purchases/sales

8

• Lets say
• From balance sheet as at 31 December 20X4
  (previous year)
• Creditors- 750
• From the additional information
• Creditors balance in 20X6- 800
• So credit purchases equal to
• 800-75050

9
(No Transcript)
10
Income and Expenditure Account

• This account is equivalent to a profit and loss
• Net profit is replaced by Surplus
• Net loss is replaced by Deficit

11
(No Transcript)
12
Subscriptions

• The Subscriptions Account is a revenue account
  and should be closed to the income and
  expenditure account.
• Remember to adjust the subscriptions with those
  in advance and in arrears at the beginning and
  the end of the period.

13

• Lets say
• From the balance sheet as at 31 December 20X4
• Current assets Subscriptions in arrears- 160
• Current liabilities Subscriptions in advance-
  40
• From additional information
• Subscriptions in arrears- 128 in this year

14
(No Transcript)
15
Or a simple calculation

• In arrears(20X6) should pay in current year
• gtBank(4,140128)
• In arrears(20X5) did not pay in last year
• gt4268-160
• In advance(20X5) received in advance for 20X6
• gt410840

16
Balance sheet

• The balance sheet is as the same as the normal
  balance sheet except
• Capital is replaced by the word Accumulated
  fund

17
Additions

• Life Membership Fees
• Should be credited to Life Membership Account and
  transfers the amount incurred in the income and
  expenditure account
• The amount incurred means the current amount
  should be written off according to the useful
  life
• E.g. life membership fee is 1000 for 10 year
  1000/10100 should be calculated as revenue in
  the IE account
• And the remaining amount 900 should be shown in
  Balance sheet under Accumulated fund