Accounting for Club And Society: What are the Sources of Income And Normal Expenditure

The following are some of the major sources of Income In a Non-Trading Concern:

Revenue in nature:
Entrance fees;
Subscriptions;
Interest from investment;
Visitors fees;
Lockers fees;
Gross trading profit from bar or restaurant;
Refreshment receipts;
Donations;

Capital in nature
Legacies;
Donations ( if stated for capital purpose like building a swimming pool)


Please note that:-

• Only the revenue income are included in the Income & Expenditure Account ( Profit & Loss A/c for a trading concern) to determine the Surplus or Deficit for the current year activities ( contrast with the trading concern - profit or loss for the current year )
  

Next are some of the normal expenditure in a Non-Trading Concern:

Revenue expenditure:
· Rent for club/association building;
· Staff wages;
· Maintenance costs of club/association;
· Honorarium;
· Insurance, printing and others

Capital expenditures:
Fixed assets

Please note that:-

• Purchases of fixed assets cannot be taken up in the Income and expenditure account only the depreciation of the fixed asset is permitted.