CLUBS AND

SOCIETIES
• Clubs and societies are often referred to as non-profit organizations or
nontrading organizations. Examples of such organizations are
recreation clubs, sports clubs etc.

• Their aim is mainly to provide social and welfare services for their
members, and not to make a profit for owners.

Quiz

• What are the sources of funds for clubs and societies? [4 sources]
 SOURCES OF FUNDS FOR CLUBS
AND SOCIETIES
• Subscriptions from members.

• They may even run profit-making events such as selling

refreshments, bar, shop.

• Money made from fundraising activities

• Donations

• Competition fees

• Gate collection
 FINANCIAL STATEMENTS OF A NON-
PROFIT MAKING ORGANIZATION
• Receipts and payments account

• Income and expenditure account

• A trading account [maintained for a profit-making shop or café.]

• Statement of financial position.

Receipts and payments account
• This is a summarized version of the cash book.

• Any money received is debited and all money paid is credited.

• non-monetary expenses such as depreciation are not included

in this account

• If money is received or paid with accruals or in advance, no

adjustments are made for prepayments and owing.
Preparing accounts for revenue
generating activities
Income and expenditure account
 Statement of financial position
The statement of financial position for a non-profit making organization is
similar to that of a sole trader.

However, as there are no owners to invest in the organization, there is no

owners’ equity or capital.

The accumulated surpluses that replace capital is known as the

accumulated fund. Annual surpluses from the income and expenditure
accounts are added to this fund and deficits subtracted.