Clubs and societies
Clubs and societies exist for the benefit of their members. They are unlike other types of businesses because they do not aim to make a profit. Clubs and societies still prepare financial accounts, however these have slightly different names:
- A cash book, is called a "receipts and payments account"
- An income statement is called an "income adn expenditure account" and shows whether there is a surplus or deficit instead of profit or loss
- A balance sheet, still called a balance sheet
Subscriptions account
- The amount of cash received is credited to the subscriptions account. This entry whould be matched by a debit entry in the club's bank account
- The income for the year is debited from the subscriptions account. The matching credit entry would be on the credit side if the income and expenditure account.
- Subscriptions due is a debit balance brought down, so it is a current asset to the club.
- Subscriptions received in advance is a credit balance brought down, so it is a current liability to the club.