OxfordAQA IGCSE Accounting: Clubs and non-profit making organisations (9215)

This study guide follows the OxfordAQA International GCSE Accounting (9215) specification, version 1.2, for exams from May/June 2026 onwards. It covers the clubs and non-profit making organisations part of section 3.4, Preparation of financial statements. The specification places this content on Paper 2: Financial Statements, which assesses content 3 to 5. Go to the OxfordAQA IGCSE Accounting hub for the full course, tick off skills on the printable checklist, and use the free diagnostics to find weak spots. The matching revision notes and practice questions are on separate pages.

All amounts on this page are in dollars. All clubs and people are invented.

What the specification asks you to do

The specification says you must prepare and comment on the financial statements of clubs and non-profit making organisations. It names four statements.

Statement	What it shows	Basis
Receipts and payments account	A summary of the cash and bank money that came in and went out	Cash only
Trading account	Gross profit or loss on an activity such as a bar, a shop or a café	Accruals
Income and expenditure account	The surplus or deficit for the year	Accruals
Statement of financial position	Assets, liabilities and the accumulated fund at the year end	Accruals

The same accounting concepts used elsewhere in section 3.4 apply here. You may be asked to record other payables, other receivables, depreciation, disposal of non-current assets, income due, income received in advance and inventory. Those are the adjustments in the worked example below. The specification says FIFO, AVCO and LIFO inventory valuation methods will not be examined.

Why clubs do not have profit and capital

A club exists to provide a service to its members, not to make a profit for an owner. So the language changes.

• A surplus (income greater than expenditure) replaces profit. A deficit replaces loss.
• The accumulated fund replaces the owner’s capital. It is the club’s net assets: assets less liabilities.
• There are no drawings, because nobody owns the club.
• Members pay subscriptions. These are usually the main source of income.

The income and expenditure account is the club’s version of the income statement. It is prepared on the accruals basis, so it matches income and expenditure to the year they belong to, whether or not cash moved.

The receipts and payments account

A receipts and payments account is a summary of the cash book. Small clubs often keep only this. Its rules are simple.

1. Receipts go on the left and payments on the right.
2. The opening balance of cash and bank goes on the left. The closing balance is the balancing figure on the right.
3. It includes all cash received and paid, whatever year the item relates to.
4. It includes capital items, such as buying or selling equipment.
5. It has no depreciation, no accruals and no prepayments, because these are not cash movements.

Its weakness is that it does not show whether the club did well. A big equipment purchase could make payments look huge, while unpaid bills do not appear at all. That is why the income and expenditure account is needed.

Worked example: Cedar Fold Archery Club

The club’s year ended 31 December 2025. It runs a café for members.

Balances at 1 January 2025

Item	Amount
Equipment at cost	12,000
Accumulated depreciation on equipment	4,800
Bank	3,200
Subscriptions owing (arrears)	300
Subscriptions received in advance	200
Rent owing	400
Café inventory	640
Café payable (amount owed to suppliers)	380

Receipts and payments account for the year ended 31 December 2025

Receipts	Amount	Payments	Amount
Balance b/d	3,200	Rent	6,000
Subscriptions	14,600	Equipment purchased	3,500
Competition entry fees	2,150	Insurance	900
Donations	1,000	Coach fees	2,400
Café sales	9,800	Café purchases	6,150
Sale of equipment	500	Prizes	650
		Café wages	1,200
		Balance c/d	10,450
Total	31,250	Total	31,250

Further information at 31 December 2025

• Subscriptions owing are 520 and subscriptions received in advance are 330.
• Rent owing is 500. Insurance prepaid is 150.
• Café inventory is 710. Café payables are 520.
• Equipment that cost 2,000, with accumulated depreciation of 1,600, was sold during the year for 500. This is the sale in the receipts.
• Depreciation is 20% a year on the cost of equipment held at the year end, straight line.

Step 1: opening accumulated fund

At the start there was no stated fund, so find it from the balances.

Assets: equipment net book value 7,200 (12,000 less 4,800), bank 3,200, subscriptions owing 300, inventory 640. Total 11,340. Liabilities: subscriptions in advance 200, rent owing 400, café payable 380. Total 980. Accumulated fund at 1 January 2025 = 11,340 less 980 = 10,360.

Step 2: subscriptions account

Subscriptions income is the amount that belongs to this year. Build the account and find the missing figure.

Subscriptions account	Amount		Amount
Balance b/d: arrears	300	Balance b/d: in advance	200
Income and expenditure (balancing figure)	14,690	Bank	14,600
Balance c/d: in advance	330	Balance c/d: arrears	520
	15,320		15,320

Subscriptions income is 14,690. The opening arrears (300) were paid this year but belong to last year, so they are not this year’s income. The opening advance (200) was received last year but belongs to this year, so it is.

Step 3: other expenses and the disposal

• Rent: 6,000 paid less 400 owing at the start plus 500 owing at the end = 6,100.
• Insurance: 900 paid less 150 prepaid = 750.
• Depreciation: equipment at cost at the year end is 12,000 less 2,000 sold plus 3,500 bought = 13,500. At 20% the charge is 2,700. Accumulated depreciation at the end is 4,800 less 1,600 plus 2,700 = 5,900. Net book value is 13,500 less 5,900 = 7,600.
• Disposal: the equipment sold had a net book value of 2,000 less 1,600 = 400. It was sold for 500, so there is a profit on disposal of 100. This goes in the income and expenditure account as income, not in the trading account.

Step 4: trading account for the café

Purchases must be adjusted for the café payable. Purchases = 6,150 paid less 380 owed at the start plus 520 owed at the end = 6,290.

Café trading account for the year ended 31 December 2025	Amount	Total
Café sales		9,800
Opening inventory	640
Add purchases	6,290
	6,930
Less closing inventory	710
Cost of sales		6,220
Gross profit		3,580

Café wages (1,200) are an expense of the income and expenditure account, because the trading account in this example stops at gross profit.

Step 5: income and expenditure account

Income and expenditure account for the year ended 31 December 2025	Amount	Total
Income
Subscriptions		14,690
Competition entry fees		2,150
Donations		1,000
Café gross profit		3,580
Profit on disposal of equipment		100
		21,520
Expenditure
Rent	6,100
Insurance	750
Coach fees	2,400
Prizes	650
Café wages	1,200
Depreciation of equipment	2,700
		13,800
Surplus for the year		7,720

Notice what is missing. The 3,500 spent on new equipment and the 500 sale proceeds are in the receipts and payments account but not here. Equipment is a capital item. Only its depreciation and any profit or loss on disposal reach the income and expenditure account.

Step 6: statement of financial position

Statement of financial position at 31 December 2025	Amount	Amount	Total
Non-current assets	Cost	Acc. dep.	NBV
Equipment	13,500	5,900	7,600
Current assets
Inventory		710
Subscriptions owing		520
Insurance prepaid		150
Bank		10,450
			11,830
Total assets			19,430
Current liabilities
Subscriptions received in advance		330
Rent owing		500
Café payable		520
			1,350
Net assets			18,080
Accumulated fund
Balance at 1 January 2025			10,360
Surplus for the year			7,720
			18,080

The two sides agree: net assets of 18,080 equal the accumulated fund of 18,080. If they do not, check the bank balance from the receipts and payments account and the opening fund first.

Commenting on the statements

The specification asks you to comment as well as prepare. Good comments use the figures and name a consequence.

• Surplus or deficit. A surplus of 7,720 on income of 21,520 means the club covered its costs comfortably. A club with a deficit may need to raise subscriptions or cut costs.
• Café performance. Gross profit of 3,580 on sales of 9,800 is a margin of about 36.5%. If the club wants more money for coaching, it could look at café prices or supplier costs.
• Cash position. The bank balance of 10,450 is large compared with current liabilities of 1,350, so the club can pay its bills. It could also fund new equipment.
• Comparing the two accounts. The receipts and payments account shows receipts exceeding payments by 7,250. The surplus is 7,720. The difference arises from accruals, prepayments, depreciation and the capital items.
• Limits. A surplus is not the aim of a club. Comment on whether the members get value, not only on size of surplus.

Common errors

1. Treating the full cash received for subscriptions as income. Adjust for arrears and advance.
2. Putting equipment purchases and sale proceeds in the income and expenditure account.
3. Adding opening arrears of subscriptions to the year’s income instead of deducting them (and the reverse for opening advance).
4. Forgetting the opening accumulated fund. It is a balancing figure from opening assets and liabilities.
5. Using the word profit for a club’s overall result. The overall result is a surplus or a deficit.
6. Putting café sales on the income side. Only the gross profit goes across.
7. Charging depreciation on opening equipment only. Read the question: here the charge is on cost at the year end.

Next steps

Work through the revision notes, then test yourself with the practice questions. Return to the course hub to choose your next topic.

Frequently asked questions

Why do clubs not have profit and capital? A club exists to provide a service to its members, not to make a profit for an owner. A surplus or deficit replaces profit or loss, and the accumulated fund replaces capital.

What is a receipts and payments account? A summary of the cash book, starting with the opening cash and bank balance, listing receipts and payments, and ending with the closing balance. It does not show whether the club did well: a big equipment purchase can make payments look huge, while unpaid bills do not appear at all.

How is the opening accumulated fund calculated? If it is not given, it is a balancing figure: opening assets minus opening liabilities, including subscriptions owing and in advance.

Do equipment purchases appear in the income and expenditure account? No. Equipment bought and sale proceeds appear in the receipts and payments account but not in the income and expenditure account, which shows only depreciation and any profit or loss on disposal.

How should I comment on a club’s statements in OxfordAQA 9215? Use the figures and name a consequence, for example by stating the surplus or deficit against the club’s income and saying what it means for the club.

Official syllabus

OxfordAQA International GCSE Accounting (9215), version 1.2, for International GCSE exams May/June 2026 onwards, section 3.4 Preparation of financial statements (clubs and non-profit making organisations), published by OxfordAQA.