Club and Society Accounts
Preparing receipts and payments accounts, and income and expenditure accounts for non-profit organisations.
TL;DR:Club and Society Accounts shift the focus from profit-making businesses to non-profit organizations like local GAA clubs or community centers. Students learn that while the goal isn't profit, these entities still need to track their 'Surplus' or 'Deficit.' The terminology changes: instead of a Profit and Loss account, students prepare an Income and Expenditure account; instead of Capital, they calculate the Accumulated Fund.
About This Topic
Club and Society Accounts shift the focus from profit-making businesses to non-profit organizations like local GAA clubs or community centers. Students learn that while the goal isn't profit, these entities still need to track their 'Surplus' or 'Deficit.' The terminology changes: instead of a Profit and Loss account, students prepare an Income and Expenditure account; instead of Capital, they calculate the Accumulated Fund.
This topic is highly relevant to the Irish social context, where volunteer-led clubs are central to community life. A major challenge for students is the treatment of 'Subscriptions,' which often involve complex accruals and prepayments for different years. This topic comes alive when students can physically model the flow of club funds and simulate the role of a club treasurer through collaborative problem-solving.
Key Questions
- How do club accounts differ from sole trader accounts?
- What is an accumulated fund?
- How are subscriptions treated in the accounts?
Watch Out for These Misconceptions
Common MisconceptionThe Receipts and Payments account is the same as the Income and Expenditure account.
What to Teach Instead
Receipts and Payments is just a summary of the cash book (cash in/out), while Income and Expenditure follows the accruals concept (income earned/expenses incurred). Peer-to-peer explanation of 'cash vs. accrual' helps clarify this.
Common MisconceptionLife Membership is treated as immediate income.
What to Teach Instead
Life membership is usually treated as a long-term liability and released to the Income and Expenditure account over several years. Using a 'timeline' visual helps students see how this income is spread out.
Active Learning Ideas
See all activities→Simulation Game
The AGM Treasurer's Report
Students act as treasurers for a local sports club. They are given a list of receipts and payments and must present a simplified Income and Expenditure account to the 'members' (the rest of the class), explaining why a surplus occurred.
Inquiry Circle
The Subscription Ledger
Groups are given a messy list of member payments, including some who owe for last year and some who paid for next year. They must use a T-account to calculate the exact subscription income for the current year.
Think-Pair-Share
Accumulated Fund Calculation
Students are given a list of a club's assets and liabilities at the start of the year. They must individually calculate the Accumulated Fund, then pair up to check each other's work before the teacher reveals the answer.