Clubs

&
Societies
….by Rakesh Kabra
Meaning:

Those organisations which are set

up to provide services to its
members and general public
without profit motive are called
Non-Profit Organization.
 Examples:
 Sports Clubs,
 Golf Clubs,
 Scout Groups,
 Youth Clubs,
 Amateur Dramatic Groups, etc.
Characteristic:

 These organisations are set up to provide

service without profit motive
 Main sources of incomes are: Subscription,
Admission fees, Donation etc.
 Managed by a group of persons called
managing committee
 Maintain books of accounts by applying

principles of double entry system.

Books of Accounts:

 Cash Book
 Members Register
 Stores Register
 Memorandum
Book
Sources of Receipts:

Revenue Receipts
 Subscriptions,
 Entrance Fees,
 Donations,
 Sale of old newspapers,
 Income from investments etc.
Capital Receipts
 Life membership Fees,
 Specific Donation,
 Sale of Old Assets & Investment
 Legacy,
 Endowment fund, etc.
Sources of Receipts:

Subscription Entrance Fee

 It is the amount paid  It is a registration
by the members fee paid by each
usually annual basis member at the time
for the facilities of joining the
provided by the club organisation.
or society.  It is a revenue
 It is a revenue receipt.
receipt.
Sources of Receipts:

General Donation Specific Donation

 Amount donated by  Amount donated for
members or any other any specific purpose
person without any (i.e. building
specific purpose is
called general construction, etc).
donation.  It is a capital receipt.
 Its’ amount is
comparatively small
than the specific
donation.
 It is a revenue receipt.
Sources of Receipts:

Legacy Life membership fee

 Amount paid by the  Amount paid by the

any member under members who seek
his will or any life time
bequest. membership of the
 It is a capital receipt. club or society.
 It is one time
payment.
 It is a capital receipt.
Sources of Receipts:

Endowment Fund Sale of old Assets

 It is a fund which  Amount received
emerges from a gift from the sale of any
or bequest, this type old asset or asset
of fund is always for which is not useful
a specific purpose. now.
 It is a capital receipt.  It is a capital receipt.
Final Accounts:

1) Receipts and Payments Account

2) Income & Expenditure Account
3) Balance Sheet
Receipts and Payments
Account

1. It is a summary of all cash and banking

transactions.
2. All receipts (revenue and capital) are shown
on the debit side and all payments (revenue
and capital) are shown on the credit side.
3. Non cash items are not shown in it, for
examples: depreciation, outstanding
expenses, accrued incomes, etc.
 Income and Expenditure A/c

1. It is a part of final accounts of Clubs &

Societies.
2. It is prepared normally at the end of the
year.
3. Its purpose is to ascertain Surplus or
Deficit.
4. Only revenue items are considered in it.