A club or society does not aim to make a profit, so its accounts report a surplus or a deficit. The equity of the club is called the accumulated fund, and it grows with each surplus.
This chapter is part of SPM Accounting. It reuses ideas from adjustments, so a student who is comfortable with accruals and prepayments will find it easier.
How do the parts connect?
A typical question gives a receipts and payments account, then a list of balances and adjustments. The job is to turn that cash summary into an income and expenditure account and a statement of financial position.
One small example shows why the steps matter. A silat club receives RM4 800 in subscriptions during the year, but some members still owe and some have paid early. The cash figure, the income figure and the asset figure all differ.
| Where the subscription appears | What it shows |
|---|---|
| Receipts and payments | Cash actually received in the year |
| Income and expenditure | Subscriptions that belong to this year |
| Statement of financial position | Amounts owing or received in advance |
Who should start where?
Begin with the lesson that matches where your marks are lost.
- Cash records and accrual records get mixed up: distinguishing receipts and payments from income and expenditure.
- Subscription figures never match: calculating subscription income.
- A canteen or tuck shop is involved: accounting for trading activities.
- The final statement will not balance: preparing the accumulated fund and financial position.
When you want to mix them all, use the clubs and societies practice set.
When is one-to-one help worth considering?
If the subscription figure and the accumulated fund keep going wrong even after you have redone the examples, a teacher can build the working with you on your own question. That is how online one-to-one Accounting tuition works, and it begins with a one-hour trial class (from RM50), with the fee agreed before you book.