Clubs and societies

Revise Clubs and societies for Accounting 0452 (O Level) — revision notes, 124 practice questions and instant AI marking.

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Cambridge IGCSE Accounting 0452

Clubs and Societies

The big idea: A club does not trade for profit, so its statements are renamed: receipts and payments is just its cash book summarised, and the income and expenditure account is its income statement, ending in a surplus or a deficit that is added to the accumulated fund.

Summary — What This Chapter Covers

A receipts and payments account summarises the cash book; an income and expenditure account follows the matching principle and shows the surplus or deficit.
Revenue-generating activities (refreshments, a shop, events) get their own trading account; only the profit goes into the income and expenditure account.
Subscriptions income is adjusted for amounts in arrears (owed by members) and in advance (paid early).
The same adjustments as a sole trader apply: depreciation, accruals and prepayments, irrecoverable debts.
The accumulated fund is the club’s capital: assets − liabilities.

1. Receipts and Payments v Income and Expenditure

Syllabus 5.4 · Paper 1 & 2

Cash summary versus measured surplus

	Receipts and payments account	Income and expenditure account
What it is	A summary of the cash book for the year	The club’s income statement
Basis	Cash actually received and paid	Income earned and expenses incurred for the year (matching)
Capital items	Included (e.g. new equipment bought)	Excluded; only depreciation appears
Adjustments	None: no accruals, prepayments or depreciation	Accruals, prepayments, subscriptions in arrears and advance, depreciation
Ends with	Closing bank/cash balance (an asset)	Surplus (income > expenditure) or deficit

Words a club uses

Profit becomes surplus, loss becomes deficit, capital becomes accumulated fund. Use the club words in the exam.

Worked example — receipts and payments account

Riverside Tennis Club had $2,140 in the bank on 1 January 2025. Prepare the receipts and payments account for 2025 from the receipts and payments below.

Receipts and payments account
Dr Date	Details	$	Cr Date	Details	$
Jan 1	Balance b/d	2,140	Jan–Dec	Refreshment purchases	2,310
Jan–Dec	Subscriptions	6,480	Jan–Dec	Rent of courts	4,200
Jan–Dec	Refreshment sales	3,950	Jan–Dec	Coach wages	2,600
Jan–Dec	Competition fees	1,200	Jan–Dec	New equipment	1,500
			Jan–Dec	General expenses	870
			Dec 31	Balance c/d	2,290
		13,770			13,770
2026 Jan 1	Balance b/d	2,290

Practice Question 1

State two reasons why the members of a club would find an income and expenditure account more useful than a receipts and payments account.

2. Refreshments and Subscriptions

Syllabus 5.4 · Paper 1 & 2

Revenue-generating activities

When a club runs a bar, café or shop, prepare a separate trading account for it. Purchases must be adjusted for amounts owing to the supplier, exactly as for a sole trader. Only the profit (or loss) on refreshments goes into the income and expenditure account.

Worked example — refreshments

Refreshment inventory was $420 on 1 January and $380 on 31 December. The club owed its supplier $260 at the start and $180 at the end, and paid $2,310 during the year. Refreshment sales were $3,950.

Riverside Tennis Club — Refreshment trading account for the year ended 31 December 2025
	$	$
Refreshment sales		3,950
Less Cost of refreshments sold
Opening inventory	420
Add Purchases (2,310 − 260 + 180)	2,230
	2,650
Less Closing inventory	380	2,270
Profit on refreshments		1,680

Subscriptions In arrears

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Also in the full note

Income earned − expenses incurred
The club’s capital

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0452 Mar 2026 · Paper 1 · Variant 2 Cambridge · mark scheme Open → 0452 Jun 2026 · Paper 1 · Variant 2 Cambridge · mark scheme Open → 0452 Nov 2025 · Paper 1 · Variant 2 Cambridge · mark scheme Open → 0452 Mar 2025 · Paper 1 · Variant 2 Cambridge · mark scheme Open → 0452 Mar 2025 · Paper 2 · Variant 2 Cambridge · mark scheme Open → 0452 Jun 2025 · Paper 1 · Variant 2 Cambridge · mark scheme Open →

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Clubs and societies