Active learning ideas
Club and Society Accounts focus on non-profit organizations, such as local GAA clubs or community centers, which are central to Irish social life. Students learn to prepare a Receipts and Payments account (a summary cash book) and an Income and Expenditure account (the non-profit equivalent of a P&L). Key challenges include managing 'Subscriptions' (membership fees) and distinguishing between capital and revenue expenditure in a volunteer-led context.
Activity 01
Students act as the Treasurer presenting the annual accounts to the 'members' (the rest of the class). They must explain why a surplus or deficit occurred and answer questions about how the 'Accumulated Fund' is being used for future club facilities.
How does an income and expenditure account differ from a profit and loss account?
Activity 02
Groups are given a messy list of member payments, including arrears from last year and prepayments for next year. They must work together to calculate the exact 'Subscription Income' that belongs in this year's Income and Expenditure account.
How do we treat life subscriptions and entrance fees?
Activity 03
Students categorize a list of club costs (e.g., buying a new lawnmower vs. buying diesel for it). They discuss in pairs why the lawnmower goes to the Balance Sheet while the diesel goes to the Income and Expenditure account.
What is an accumulated fund and how is it calculated?
A few notes on teaching this unit
Watch Out for These Misconceptions
Treating the 'Receipts and Payments' balance as the 'Profit' for the year.
Students often forget that Receipts and Payments is just a cash summary. Through peer discussion, they can see that it includes capital items (like buying a bus) which don't belong in the Income and Expenditure account, which only measures yearly operational performance.
Confusing 'Accumulated Fund' with 'Cash in Bank'.
Students often think the fund is money they can spend. Modeling the Balance Sheet helps them see that the Accumulated Fund represents the total net assets (including buildings and equipment) owned by the club since its inception, not just liquid cash.
Methods used in this brief
Incomplete Records
Ascertaining profit or loss when double-entry records are not maintained. Techniques for constructing accounts from single-entry data.
8 methodologies
Service Firm Accounts
Accounting procedures for service-providing businesses such as medical practices or health clubs. Preparation of final accounts tailored to service industries.
8 methodologies