CHAPTER 27

CLUBS AND SOCIETIES

Question 1

NEWTOWN SPORTS CLUB

Receipts and Payments account for the year ended 31 December 2014
Receipts $ Payments $
Balance of cash in hand a 720 Rent of sports ground 1 200
and at bank 1 January New sports equipment 2 700
Members’ subscriptions 3 850 Competition prizes 450
Competition entrance fees 620 Loan interest 40
Donation 500 Coach hire 900
Loan from member 800 Administrative expenses 170
Balance of cash in hand and 1 030
at bank 31 December 1 030
6 490 7 520

Question 2

KINGSTOWN HIGH SCHOOL MUSIC SOCIETY

Receipts and Payments account for the year ended 31 July 2014
Receipts $ Payments $
Balance of cash funds at Tuition fees 2 500
1 August 2013 840 Hire of school facilities 480
Members’ subscriptions 5 750 Musical instruments 3 800
Ticket sales 930 Refreshments 280
Loan from school 1 000 Loan interest 50
Gifts 450 Administrative costs 140
Balance of cash funds at
31 July 2012 1 720
8 970 8 970

Question 3

Income and Expenditure account for the year ended 31 December 2014
$ $
Income
Members’ subscriptions ($3 850 received + $420 due
− $80 received in advance) 4 190
Competition entrance fees 620
Donation 500
5 310
Expenditure
Rent of sports ground ($1 200 paid − $240 prepaid) 960
 Competition prizes 450
Loan interest 40
Coach hire 900
Administration expenses ($170 paid + $30 due) 200
Depreciation of sports equipment
($11 300 + new $2 700) × 20% 2 800
(5
350)
Deficit for year (40)

Question 4

Income and Expenditure account for the year ended 31 July 2014
$ $
Income
Members’ subscriptions ($5 750 received + $125 due
− $200 received in advance) 5 675
Ticket sales 930
Gifts 450
7 055
Expenditure
Tuition fees (paid $2 500 + due $320) 2 820
Hire of school facilities 480
Refreshments 280
Loan interest 50
Administration costs (paid $140 − $80 prepaid) 60
Depreciation of musical instruments
($18 400 + new $3 800) × 10% 2 220
(5 910)
Surplus for year 1 145

Question 5

(a) Calculation of subscription income

(a) Calculation of subscription income

$
Received during year ended 31 December 2013 810
Less subscriptions received in advance for 2014 (150)
660
Add subscriptions due for 2013 90
Subscription income for 2013 750
(b)
Subscriptions account
$ $
Income and Bank 810
expenditure 750 Closing balance c/d
Closing balance c/d (due) 90
(received in advance) 150
900 900
Balance b/d (due) 90 Balance b/d
(received in advance) 150

Question 6

(a) Calculation of subscription income

$
Received during year ended 31 December 2013 2 310
Less subscriptions received in advance for 2014 (560)
1 750
Add subscriptions due for 2013 350
Subscription income for 2013 2 100

(b)
Subscriptions account
$ $
Income and Bank 2 310
expenditure 2 100 Closing balance c/d
Closing balance c/d (due) 350
(received in advance) 560
2 660 2 660
Balance b/d (due) 350 Balance b/d
(received in advance) 560
Question 7

(a) Calculation of subscription income

$
Received during year ended 31 December 2014 1 110
Add subscriptions received in advance for 2014 150
1 260
Less subscriptions due for 2013 (90)
1 170
Less subscriptions received in advance for 2015 (120)
1 050
Add subscriptions due for 2014 180
Income for 2014 1 230

(b)
Subscriptions account
$ $
Balance b/d (due) 90 Balance b/d
Income and expenditure 1 230 (received in advance) 150
Balance c/d (received Bank 1 110
in advance) 120 Balance c/d (due) 180
1 440 1 440
Balance b/d (due) 180 Balance b/d (received in
advance) 120

Question 8

(a) Calculation of subscription income

$
Received during year ended 31 December 2014 2 870
Add subscriptions received in advance for 2014 560
3 430
Less subscriptions due for 2013 (350)
3 080
Less subscriptions received in advance for 2015 (350)
2 730
Add subscriptions due for 2014 140
Income for 2014 2 870
(b)
Subscriptions account
$ $
Balance b/d (due) 350 Balance b/d
Income and expenditure 2 870 (received in advance) 560
Balance c/d (received Bank 2 870
in advance) 350 Balance c/d (due) 140
3 570 3 570
Balance b/d (due) 140 Balance b/d (received in
advance) 350

Question 9

THE MERLIN SAILING CLUB

Statement of financial position at 30 April 2014
$ $
NON-CURRENT ASSETS
Sailing equipment at valuation 52 300

CURRENT ASSETS
Other receivables:
Subscriptions due 770
Boathouse rent prepaid 440
Cash at bank and in hand 1 130
2 340
54 640
ACCUMULATED FUND
at 1 May 2013 45 750
add surplus for the year 3 390
49 140
NON-CURRENT LIABILITIES
Loan from members (repayable 2018) 4 000

CURRENT LIABILITIES
Other payables:
Secretary’s expenses due 110
Subscriptions received in advance 1 390
1 500
54 640
Question 10

THE MATCHPOINT BADMINTON CLUB

Statement of financial position at 31 August 2014
$ $
NON-CURRENT ASSETS
Badminton equipment at valuation 2 180

CURRENT ASSETS
Inventory refreshments 450
Other receivables:
General expenses prepaid 80
Subscriptions due 410
Cash in hand 130
1 070
3 250
ACCUMULATED FUND
at 1 September 2013 2 960
less deficit for year (2 850)
110
CURRENT LIABILITIES
Other payables:
Subscriptions received in advance 230
Hire of badminton court charges due 330
Loans from members 800
Bank overdraft 1 780
3 140
3 250

Question 11

(a) Calculation of accumulated fund at 1 January 2014

$ $
Assets
Costumes and stage sets 11 900
Prepaid hire of community centre 270
Subscriptions due 90
Cash at bank 3 150
15 410
Liabilities
Administration expenses due 140
Subscriptions received in advance 320
(460)
Accumulated fund 14 950
(b) Subscriptions account
$ $
Opening balance (due) 90 Opening balance
Income and (received in advance) 320
expenditure 3 540 Bank 3 200
Closing balance c/d Closing balance c/d
(received in advance) 110 (due) 220

3 740 3 740
Balance b/d (due) 220 Balance b/d
(received in advance) 110

(c) CURTAIN-UP DRAMA CLUB

Income and Expenditure account for the year ended 31 December 2014
$ $ $
Income
Members’ subscriptions 3 540
Gifts from members 350
Ticket sales for productions 4 480
Profit on competitions
receipts 630
less prizes 380
250
8 620
Expenditure
Hire of community centre (paid $1 740 +
opening prepaid $270 + closing due $180) 2 190
Administration expenses (paid $490 −
opening due $140 − closing prepaid $50) 200
Depreciation of costumes and stage sets
(opening valuation $11 900 + new $5 800
− closing valuation $13 500) 4 200
(6 590)
Surplus for year 2 030

(d) Statement of financial position at 31 December 2014

$ $ $
NON-CURRENT ASSETS
Costumes and stage sets at valuation 13 500
CURRENT ASSETS
Other receivables:
Administration expenses prepaid 50
Subscriptions due 220
Balance at bank 3 400
3 670
 17 170
ACCUMULATED FUND
at 1 January 2014 14 950
Add surplus for year 1 930
16 880
CURRENT LIABILITIES
Other payables:
Subscriptions received in advance 110
Hire of community centre due 180
290
17 170

Question 12

(a) Calculation of accumulated fund at 1 July 2013

$ $
Assets
Cash at bank 3 840
Club buildings (net book value) 259 000
Club furniture and equipment 17 500
Inventory: refreshments 870
Subscriptions due 650
281 860
Liabilities
General expenses due 380
Subscriptions received in
advance 210
(590)
Accumulated fund 281 270

(b) Subscriptions account

$ $
Opening balance (due) 650 Opening balance
Income and (received in advance) 210
expenditure 6 080 Bank 6 750
Closing balance c/d Closing balance c/d
(received in advance) 710 (due) 480

7 440 7 440
Balance b/d (due) 480 Balance b/d
(received in advance) 710
(c) Refreshments account for the year ended 30 June 2014
$ $
Sales of refreshments 2 470
Less: Opening inventory 870
Purchases (paid $1 750 + due $310) 2 060
2 930
Closing inventory 380
(2 550)
Loss on refreshments (80)

(d) GLADES SOCIAL CLUB

Income and Expenditure account for the year ended 30 June 2014
$ $
Income
Members’ subscriptions 6 080
Expenditure
Loss on refreshments 80
General expenses (paid $4 440 − opening
due $380 − closing prepaid $60) 4 000
Depreciation:
club buildings ($280 000 × 2.5%) 7 000
furniture and equipment (opening valuation
$17 500 + new $6 750 − closing valuation
$20 500) 3 750
(14 830)
Deficit for year (8 750)

(e) Statement of financial position at 30 June 2014

$ $ $
NON-CURRENT ASSETS
Club buildings at cost 280 000
less provision for depreciation 28 000
252 000
Furniture and equipment at valuation 20 500
272 500

CURRENT ASSETS
Inventory: refreshments 380
Other receivables:
General expenses prepaid 60
Subscriptions due 480
Balance at bank 720
1 640
274 140
 ACCUMULATED FUND
at 1 July 2013 281 720
Less deficit for year 8 750
272 520
CURRENT LIABILITIES
Other payables:
Subscriptions received in advance 710
Suppliers of refreshments 310
Loans from members 600
1 620
274 140

EXAM STYLE QUESTIONS

Q Ans Q Ans Q Ans Q Ans Q Ans

13 D 14 C 15 C 16 D 17 D

Question 18

(a) Subscriptions account

$ $
Balance b/d (due) 240 Balance b/d
Income and expenditure 3 150 (received in advance) 80
Bank 2 990
Balance c/d (due) 320
3 390 3 390
Balance b/d (due) 320

(b) RACKETS TENNIS CLUB

Income and Expenditure account for the year ended 30 September 2014
$ $ $
Income
Members’ subscriptions 3 150
Profit on competitions
receipts 680
less expenses (paid $520 + due $40) 560
120
Interest on savings account 110
3 380
Expenditure
General expenses (paid $490 + opening
prepaid $30 − closing prepaid $90 430
Depreciation of tennis equipment
(opening value $6 300 + new $1 500) × 10% 780
(1 210)
Surplus for year 2 170
(c) Items in receipts and payments account which should not be included in the income
and expenditure account. Any two from:

Opening balance at bank

Transfer of funds to a savings account
Purchase of tennis equipment
Closing balance at bank

These items do not appear in the income and expenditure account because they are
not revenue expenditure or revenue income.

(d) One item in income and expenditure account which was not shown in the receipts
and payments account. Select from:

Depreciation of tennis equipment

Profit on competitions
Surplus for year

These items do not appear in the receipts and payments account because they do
not involve the receipt or payment of cash.