A member of this club, on being presented with a copy of these accounts, can obtain a very comprehensive picture of how its financial affairs have been looked after.

On a current basis he will see that the club's expenditure has been £1252 less than its revenue, including the writing down of wasting assets; so its capital has risen from the original grant of £5,000 and gift of pavilion of £1,000 (£6,000) to £6,252, which is very satisfactory.

The balance sheet shows how the capital has been disposed in acquiring useful assets suitable to the purpose of the club. Those that wear out or have a limited life have been appropriately written down, the depreciation being charged against revenue.

The cash position looks healthy as there is £1l,097 in the current bank account and £11,500 on deposit, where it is earning interest. Presumably some of the money in current account is about to be used for acquiring further assets, since otherwise it would be better to put it on deposit account.

Less satisfactory is that £13028 is outstanding on overdue subscriptions. The treasurer should be asked to chase these slow payers.

Accounts of Clubs And Societies

The annual statement of the financial affairs of societies and other non-profit-making organisations takes a form very similar to that of the personal income and expenditure account and balance sheet described above. Exactly the same principles are followed of distinguishing between capital receipts and payments, which will be reflected in the statement of liabilities and assets (the balance sheet), and revenue receipts and expenditure which will form the basis of the income and expenditure account.

An added refinement is that, where revenue receipts and payments relate to a succeeding... see: Accounts of Clubs And Societies

Refunds, Personal And Business Finance 2017

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