Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes: Accounting for non profit organisations Example

The Receipts and Payments Account

ReceiptsAmount($)Receipts and Payments AccountPaymentsAmount($)
Balance b/d200Games equipment2 000
Subscriptions 20x83 500Rent and Rates1 500
Subscriptions 20x9380Extension to club house8 000
Snack bar income6 000Snack bar purchases3 750
Visitor's fees650Secretarial expenses240
Loan from bank5 500Interest on load260
Competition fees820Snack bar expenses600
Balance c/d700

17 050

17 050

Chivero Angling Club Snack Bar Income Statement

Sales6 000
Less Cost of Sales
Opening Stock800
Add Purchases

3 750

4 550
Less Closing Stock


(3 650)

Gross Profit2 350
Less Expenses
Snack Bar Expenses(600)
Net Profit (A)

1 750

Chivero Angling Club Income and Expenditure Account for the year ended 31 December 20×8

Subscriptions3 500
Visitor's fees650
Competition fees820
Snack Bar Profit (A)

1 750

6 720
Less Expenditure
Rent and Rates1 500
Secretarial Expenses240
Loan interest260
Depreciation on games and equipment


(2 400)
Surplus of income over expenditure

4 320


  • Snack bar related expenditure is already included in the calculation for bar profit and should therefore not appear in the income and expenditure account
  • Gaming equipment is depreciated at 20% i.e. 20% of $2 000 since there is no depreciation cited for buildings we shouldn’t depreciate buildings
  • The extension of buildings is of a capital nature and thus does not feature in the Income and Expenditure Account

To see the Statement of Financial Position for Chivero Angling Club and its related workings please click here.

To access more topics go to the Cambridge IGCSE Accounting(0452)/O Level Principles of Accounts(7110) Notes.