1. Clubs
&
Societies
….by Rakesh Kabra

2. Meaning:
Those organisations which are set
up to provide services to its
members and general public
without profit motive are called
Non-Profit Organization.

3.  Sports Clubs,
 Golf Clubs,
 Scout Groups,
 Youth Clubs,
 Amateur Dramatic Groups, etc.
Examples:

4. 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.

5. Books of Accounts:
 Cash Book
 Members Register
 Stores Register
 Memorandum
Book

6. 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.

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

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

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

10. Sources of Receipts:
 It is a fund which
emerges from a gift
or bequest, this type
of fund is always for
a specific purpose.
 It is a capital receipt.
 Amount received
from the sale of any
old asset or asset
which is not useful
now.
 It is a capital receipt.
Endowment Fund Sale of old Assets

11. Final Accounts:
1) Receipts and Payments Account
2) Income & Expenditure Account
3) Balance Sheet

12. 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.

13. 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.