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Non-Profit Making Organisations

The Analysed Receipts and Payments Account

Because we can't tell whether we have made a surplus or deficit on the things that a club or society does, we can prepare what is called an analysed receipts and payments account. The term 'analysed' is used as it breaks down the accounts into constituent parts to help give a clearer picture. Here's an example of what they are and what they do.

Worked Example

Here are the transactions of the Bristol Mountain Bikers Society for the first four months of the year. Prepare an analysed Receipts and Payments Account for the Society for this period.

Before we show the answer to this question, let's look at what we would have prepared until now:

That's what we would have done; now here's what we can do now. You might appreciate that analysed statements like these are ideally prepared in a spreadsheet.

Worked Example Solution

See what's happened. It's a fairly simple example but it gives you the idea. Look at just one example of the additional information we've got now:

See? By analysing the receipts and payments in this way we can get summaries of all major items. Notice also that we used the term surplus rather than profit.

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