A WebQuest for AS Level Accounting Students ACCOUNTS OF CLUBS AND SOCIETIES Designed by: Howard Gittins, Warwickshire College Introduction Imagine that you are the Treasurer a club called the Thelford Social Club whose members meet monthly in a public hall to have a social evening. Members pay an annual subscription to be a member and to receive the monthly newsletter. Food and drinks can be purchased at the weekly social meetings. Four times a year a trip is organised for members to seaside locations – an extra fee is charged for these trips. You keep the analysed Cash Book for the club and enter transactions as they occur. This Cash Book allows you to total the various income and expenses for the club for the year. At the end of each year you make adjustments to the accounts for any income (e.g. members’ subscriptions) not yet received and expenses not yet paid. At the end of year meeting you have been asked to present an Income and Expenditure Account and Balance Sheet. Under the heading ‘Tasks’ (below) in this WebQuest you will see a Receipts and Payments Account (which is a summary of the total from the analysed Cash Book). You will be asked to enter the figures from this Receipts and Payments Account into an Income and Expenditure Account (to calculate the surplus of Income over Expenditure) and a Balance Sheet (which is a list of all assets and liabilities for the club). Tasks Using the figures from the following Receipts and Payments Account shown below for the year ended December 31st 200X and other information given – using the Spreadsheet (Click on the link on next line) – A:\ANSWER_Q_Project_3.xls Draw up: 1) Income and Expenditure Account for the year ended December 31st 200X 2) Balance Sheet as at 31st December 200X Assets at beginning of the year were – Bank balance as shown below, Subscriptions in Arrears £900, Opening Stock of Drinks £1,000. Thelford Social Club Receipts and Payments Account For the year ended December 31st 200X Receipts: Payments: Bank balance b/d 3,680 Advertisements 430 Subscriptions 10,120 Barman’s wages 1,540 Bar Takings 4,650 Hire of Public Hall 750 Receipts for Trips 1250 Hire of coach for trips 920 Donations 780 Insurance 105 Printing costs 240 Purchases costs of drinks 2,920 Purchase of computer 980 Purchase of office equipment 530 Balance c/d ? Notes: 1) Closing Stock of drinks at end of year = £1,200 2) Subscriptions in arrears at 31/12/05 = £370 3) Barman’s wages owing at 31/12/05 = £60 4) Printing costs owing at 31/12/05 = £25 5) Insurance in advance at 31/12/05 = £15 6) Using the Equal Instalment Method depreciate the computer at 40% on cost and other office equipment at 20% on cost. Resources The following web site will give details on Income and Expenditure Accounts (for Clubs and Societies): www.acca.org.uk In the ‘Search’ box (bottom right of screen) - type in ‘Club and Societies’ (without the quote marks). From the list given, choose ‘Club and society accounts’. Study the case study and examples of Club and Societies Accounts. Process Study the layout of an Income and Expenditure Account for a club. Notice how ‘Net Profit’ is called ‘Excess of Income over Expenditure’ in the Income and Expenditure Account. Also notice that ‘Capital’ is called ‘Accumulated Fund’ in the Balance Sheet. When you have understood the principles then complete Task 1 and 2 using a Spreadsheet. Save and print your Final Accounts. Assessment Save your answer and hand in your printed Income and Expenditure Account and Balance Sheet for the tasks above. Conclusion This WebQuest should have helped you to understand how an Income and Expenditure Account and Balance Sheet for a club or society is drawn up. The task also shows how a Spreadsheet can assist in calculation and presentation.
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