An event surplus is the income from one activity of the club, such as a dinner, a fair or a sports day, minus the costs of running it. If costs are higher than income, the result is an event deficit. Questions ask for it separately so that you can show how each activity performed.
This lesson follows adjusting subscriptions in the clubs and societies module and connects to the income and expenditure layout.
How do you find the surplus step by step?
- List the income of the event: tickets, raffles, entry fees and donations linked to it.
- List the costs of the event: food, hire, prizes, decorations and printing.
- Check for items bought for resale and, if there are any, work out the cost of sales using opening inventory, purchases and closing inventory.
- Subtract total costs from total income.
- Show the result once in the income and expenditure account as a surplus or deficit.
Worked example
Merpati Youth Club held an annual charity dinner. It sold 120 tickets at RM25 each and raised RM640 from a raffle. Costs were: food RM1,450, decorations RM320, sound system hire RM280 and raffle prizes bought RM190.
Step 1, income: tickets 120 × 25 = 3,000. Add the raffle of 640 for total income of 3,640.
Step 2, costs: 1,450 + 320 + 280 + 190 = 2,240.
Step 3, surplus: 3,640 − 2,240 = RM1,400.
| Dinner account | RM |
|---|---|
| Ticket sales | 3,000 |
| Raffle | 640 |
| Total income | 3,640 |
| Food | (1,450) |
| Decorations | (320) |
| Sound system hire | (280) |
| Raffle prizes | (190) |
| Total costs | (2,240) |
| Dinner surplus | 1,400 |
In the club’s income and expenditure account, the line “Surplus on annual dinner 1,400” appears under income. The individual costs are not listed again.
The mistake to watch for
A common slip is to put the surplus in income and also list the event costs under expenditure.
Mistaken layout: Dinner surplus 1,400 shown as income, plus food, decorations, sound hire and prizes of 2,240 shown as expenditure.
The costs have been used twice, so the club’s overall surplus is RM2,240 too low.
The correction is to choose one route. If you use the net surplus, the costs have already been deducted. If you list gross income and costs, do not also show a surplus line.
The check is simple: the dinner should change the club’s final surplus by exactly RM1,400.
Check yourself
Try these, then open each answer.
1. A sports day raised RM1,800 and cost RM2,150 to run. State the result.
Show answer
1,800 − 2,150 = a deficit of RM350.
2. A refreshment stall sold goods for RM1,900. Opening inventory was RM100, purchases were RM1,100 and closing inventory was RM180. Find the profit on the stall.
Show answer
Cost of sales: 100 + 1,100 − 180 = 1,020. Profit: 1,900 − 1,020 = RM880.
3. A sports day had 85 entrants paying RM12 each and donations of RM300. Costs were medals RM410, refreshments RM350 and field hire RM200. Find the surplus.
Show answer
Income: 85 × 12 = 1,020, plus 300 gives 1,320. Costs: 410 + 350 + 200 = 960. Surplus: 1,320 − 960 = RM360.
Where this leads next
Once events are clear, learn to treat a club asset purchase appropriately. Practise posting and checking totals with the double-entry and ledger trainer, then test yourself on the practice set.
Students often know the formula but mix gross and net when a long question has several events. A teacher can walk through that decision on your own attempts in online one-to-one Accounting tuition.