Chapter 14 Club accounts

Higher Level
St. Mary’s Rugby Club

Adjustments
A1 Opening Depreciation on fixed assets
Asset Cost Depreciation to date Net value
€ € €
Clubhouse and Pitches 750,000 €600,000 x 2% x 3 years = 36,000 714,000

Equipment 34,000 34,000 x 20% x 3 years = 20,400 13,600

A2 Investments and Investment Interest A3 Loan and Loan Interest

Amount received €1,600 Loan interest 8% x 1.25 10%
Less amount due 01/01/28 (Last yr) (€ 600) 110% = €33,000
Add amount due 31/12/28 (This yr) € 400 ⟶ 100% = €33,000/110 x 100 €30,000
Receivable € 1,400 Interest € 3,000
Interest
⟶ 2% = €1,400 Due €3,000/15 x 7 months € 1,400
⟶100%= €1,400/2 x 100 €70,000 Payable €3,000 / 15 x 8 months € 1,600

A4 Catering A5 Lotto
Catering receipts €15,000 Lotto sales €27,400
Less cost of sales Less lotto prizes (€18,400)
Purchases €8,300 Lotto profit € 9,000
Less stock (€500) (€7,800)
Catering profit €7,200 A6 Equipment - depreciation
Opening €34,000 x 20% € 6,800
A7 Subscriptions New €40,000 x 20% x 3/12 € 2,000
Amount received €160,000 Total charged € 8,800
Less due 01/01/28 - last year (€ 2,100)
Less life membership (A9) (€12,000) A8 Life Membership
Less subscriptions 2029 (next year) (€ 1,500) Value 01/01/2028 € 54,000
Less levy for 2028 (€60 x 1,000) (€60,000) ⟶ €54,000/9 = €6,000 x 2 € 12,000
Less levy for 2027 (€60 x 12) (€ 720) € 66,000
Total €83,680 €66,000 / 11 (income) (€ 6,000)
Value 31/12/2028 € 60,000

A9 Levy reserve fund A10 Sports Council Grant

Value 01/01/2028 € 60,000 Amount received €18,000
This years levy € 60,000 Capital € 7,800
Value 31/12/2028 €120,000 Annual €10,200

A11 Coaching Expenses A12 General expenses

Amount paid €12,300 Amount paid €91,200
Less wages due 01/01/2028 (€1,800) Less insurance prepaid * (€1,500)
Add wages due 31/12/2028 € 4,500 Total payable €89,700
Total payable €15,000 * €3,600 x 5/12 = €1,500

A13 Depreciation Clubhouse

€600,000 x 2% €12,000
A14 Assets/depreciation re balance sheet
Asset Cost Dpr 01/01/28 Dpr. 2028 Dpr. 31/12/28
€ € €
Clubhouse and pitches 750,000 36,000 12,000 48,000

Equipment 74,000 20,400 8,800 29,200

(a) Statement of Accumulated Fund of the St Mary’s Rugby Club on 01/01/2028

€ €

Assets

Clubhouse and pitches (A1) 714,000

Equipment (A1) 13,600

Bar stock 9,400

Investment interest due 600

Bar debtors 700

Subscriptions due 2,100

Building society deposit 22,000

Investments (A2) 70,000

Levy due (A7) 720 833,120

Less Liabilities

Life membership 54,000

Bar creditors 900

Wages due 1,800

Levy reserve fund 60,000

Bank 10,500

Loan (A3) 30,000

Loan interest due (A3) 1,400 (158,600)

Accumulated Fund 01/01/2028 674,520

(b) Bar Trading Account
€ €
Bar sales (€92,300 - €700 + €800) 92,400
Less Cost of sales
Opening stock 9,400
Purchases (€71,200 - €900 + €1,490) 71,790
81,190
Less closing stock (€12,100 - €500) (11,600) (69,590)
Bar profit 22,810

(c) Income and Expenditure of St. Mary’s Rugby Club for the year ended 31/12/2028
€ €

Income

Investment interest (A2) 1,400

Bar profit (part b) 22,810

Catering profit (A4) 7,200

Entrance fees 4,800

Annual sponsorship 15,600

Lotto profit (A5) 9,000

Subscriptions (A7) 83,680

Life membership (A8) 6,000

Sports council grant (A10) 10,200 160,690

Less Expenditure

Loan interest (A3) 1,600

Coaching expenses (A11) 15,000

General expenses (A12) 89,700

Depreciation

Equipment (A6) 8,800

Clubhouse (A13) 12,000 (127,100)

Excess/surplus income over expenditure 33,590

(d) Balance Sheet of St. Mary’s Rugby Club as at 31/12/2028
€ € €

Fixed Assets Cost Aggregate Dpr. Net Book Value

Clubhouse and pitches (A14) 750,000 48,000 702,000

Equipment (A14) 74,000 29,200 44,800

824,000 77,200 746,800

Financial assets

2% Investments (A2) 70,000

816,800

Current Assets

Stocks 12,100

Bar debtors 800

Investment interest due (A2) 400

Insurance prepaid (A12) 1,500

Bank 71,800

86,600

Creditors : amounts falling due within 1 year

Bar creditors 1,490

Subscriptions prepaid (A7) 1,500

Wages due (A11) 4,500 (7,490) 79,110

Total net assets 895,910

Financed by

Creditors amounts falling due after 1 year

Accumulated fund 01/01/2028 674,520

Add Sports Council grant (A10) 7,800

682,320

Levy reserve fund (A9) 120,000

Life membership (A8) 60,000

Surplus income over expenditure (part c) 33,590 895,910

Funds Employed 895,910

(e) As treasurer I would make the following points in response to this proposal:

• A reduction in subscriptions of 10% for 2029 would involve a reduction in club income of
€8,368 (€83,680 x 10%).
• The club is capable of bearing such a decrease based on the surplus income for the
year 2028 of €33,590. However almost all of this surplus is provided by entrance fees
€4,800, sponsorship of €15,600 and an annual grant from Sporting Ireland €10,200.
• The club has planned capital expenditure in the future (levy reserve fund €120,000).
Even though the club has a healthy bank balance of €71,800, Investments €70,000,
these funds are not of a recurring nature and even the sponsorship may not be
guaranteed in future years.
• It would therefore not be prudent to reduce subscription fees at present. Instead it
would be advisable to retain the present level of fees and use these fees to provide
improved facilities for existing members and possibly attract new members into the
club.