- 20 Marks
Question
The Dabi Golf Club prepares its accounts annually on 31st March. The Receipts and Payments Account for the year ended 31st March 2016 was as follows:
| GHȼ | GHȼ | |
|---|---|---|
| Balance b/d | 2,900 | |
| Subscriptions received | 70,800 | |
| Competition receipts | 12,000 | |
| Dinner dance ticket sales | 13,000 | |
| Donations | 1,000 | |
| Sale of equipment | 25,000 | |
| Competition prizes | 2,800 | |
| Groundkeepers’ wages | 14,000 | |
| Dinner dance expenses | 6,800 | |
| Insurance | 9,200 | |
| Equipment purchases | 40,000 | |
| General expenses | 30,100 | |
| Electricity | 1,400 | |
| Balance c/d | 20,400 | |
| 124,700 | 124,700 |
The following additional information is available:
i) The remaining assets and liabilities of the Club at the beginning and end of the year were:
| 1st April 2015 (GHȼ) | 31st March 2016 (GHȼ) | |
|---|---|---|
| Clubhouse | 130,000 | 130,000 |
| Equipment | 140,000 | 120,000 |
| Electricity owing | 400 | 200 |
| Subscriptions due and unpaid | 2,500 | 2,900 |
| Subscriptions paid in advance | 6,200 | 4,100 |
| Stock of competition prizes | 600 | 200 |
ii) During the year equipment with a book value of GHȼ30,000 was sold for GHȼ25,000. iii) Of the subscriptions due on 1st April 2015, GHȼ220 remains unpaid. This is to be treated as an irrecoverable debt.
Required:
a) Calculate the Accumulated Fund on 1st April 2015. (3 marks)
b) Prepare the Subscription Account for the year ended 31st March 2016. (4 marks)
c) Prepare: i) the Income and Expenditure Account for the year ended 31st March 2016
ii) Statement of Financial Position as at 31st March 2016. (13 marks)
Answer
a)
Accumulated fund on 1 April 2015:
| GHȼ | |
|---|---|
| Clubhouse | 130,000 |
| Equipment | 140,000 |
| Bank | 2,900 |
| Stock of competition prizes | 600 |
| Subscriptions due | 2,500 |
| Total | 276,000 |
| Less: | |
| Electricity owing | 400 |
| Subscriptions in advance | 6,200 |
| 6,600 | |
| Accumulated Fund | 269,400 |
Here is the next question from the document, formatted as requested:
========== Level: Level 1 Professional Bodies: ICAG Programs: Professional Program Subjects: Financial Accounting Topics: Preparation of not-for-profit accounts Series: Nov. 2016 Total Marks: 20 Question Tags: Not-for-profit, Receipts and Payments Account, Income and Expenditure Account, Financial Position
Question Short Summary: Calculation of Accumulated Fund, preparation of Subscription Account, Income and Expenditure Account, and Statement of Financial Position for a not-for-profit organization.
Question:
QUESTION FIVE
The Dabi Golf Club prepares its accounts annually on 31st March. The Receipts and Payments Account for the year ended 31st March 2016 was as follows:
| GHȼ | GHȼ | |
|---|---|---|
| Balance b/d | 2,900 | |
| Subscriptions received | 70,800 | |
| Competition receipts | 12,000 | |
| Dinner dance ticket sales | 13,000 | |
| Donations | 1,000 | |
| Sale of equipment | 25,000 | |
| Competition prizes | 2,800 | |
| Groundkeepers’ wages | 14,000 | |
| Dinner dance expenses | 6,800 | |
| Insurance | 9,200 | |
| Equipment purchases | 40,000 | |
| General expenses | 30,100 | |
| Electricity | 1,400 | |
| Balance c/d | 20,400 | |
| 124,700 | 124,700 |
The following additional information is available: i) The remaining assets and liabilities of the Club at the beginning and end of the year were:
| 1st April 2015 (GHȼ) | 31st March 2016 (GHȼ) | |
|---|---|---|
| Clubhouse | 130,000 | 130,000 |
| Equipment | 140,000 | 120,000 |
| Electricity owing | 400 | 200 |
| Subscriptions due and unpaid | 2,500 | 2,900 |
| Subscriptions paid in advance | 6,200 | 4,100 |
| Stock of competition prizes | 600 | 200 |
ii) During the year equipment with a book value of GHȼ30,000 was sold for GHȼ25,000. iii) Of the subscriptions due on 1st April 2015, GHȼ220 remains unpaid. This is to be treated as an irrecoverable debt.
Required: a) Calculate the Accumulated Fund on 1st April 2015. (3 marks) b) Prepare the Subscription Account for the year ended 31st March 2016. (4 marks) c) Prepare: i) the Income and Expenditure Account for the year ended 31st March 2016 ii) Statement of Financial Position as at 31st March 2016. (13 marks)
(Total: 20 marks)
Answer:
a)
Accumulated fund on 1 April 2015:
| GHȼ | |
|---|---|
| Clubhouse | 130,000 |
| Equipment | 140,000 |
| Bank | 2,900 |
| Stock of competition prizes | 600 |
| Subscriptions due | 2,500 |
| Total | 276,000 |
| Less: | |
| Electricity owing | 400 |
| Subscriptions in advance | 6,200 |
| Total | 6,600 |
| Accumulated Fund | 269,400 |
(3 marks)
b)
Subscriptions Account for the year ended 31 March 2016
| GHȼ | GHȼ | |
|---|---|---|
| Balance b/d | 2,500 | |
| Income and expenditure | 73,520 | |
| Balance c/d | 4,100 | |
| Bank | 70,800 | |
| Irrecoverable debt | 220 | |
| Balance c/d | 2,900 | |
| 80,120 | 80,120 |
c) i) Dabi Golf Club Income and Expenditure Account for the year ended 31 March 2016
Working (W)
Depreciation calculation:
Net book value of equipment at 1 April 2014: GHȼ140,000
Disposal: (30,000)
Additions: 40,000
Net book value of equipment at 31 March 2015: (120,000)
Depreciation of equipment: 30,000
- Topic: Preparation of not-for-profit accounts
- Series: NOV 2016
- Uploader: Theophilus