- 15 Marks
FA – May 2014 – L1 – SA – Q3 – Accounts of Not-for-Profit Entities
Preparation of the income and expenditure statement for a football club.
Question
The information below relates to ABC Football Club in respect of the year ended 31 October 2013:
| Item | N’000 |
|---|---|
| Rent and rates | 2,500 |
| Stadium repairs and maintenance | 4,500 |
| Match takings | 20,000 |
| State government grant and aid | 25,000 |
| Wages and salaries | 15,000 |
| Payment of match bonus | 5,000 |
| Transfer fees of players who left the club | 12,000 |
| Match expenses | 3,500 |
| Transfer fees of new players bought | 8,000 |
| Fines and penalties paid to NFF | 3,000 |
| Cash and bank balances at the beginning of the period | 8,700 |
| Sales proceeds of memorabilia | 900 |
| Prize money for winning FA cup | 3,500 |
| Motor running expenses | 500 |
| Donations received | 9,500 |
| Administration expenses | 2,000 |
| Printing and stationery | 400 |
| Communication | 600 |
| Honorarium | 200 |
The following information is also relevant:
(i) Insurance premium owing N500,000.
(ii) The club is currently facing NFF disciplinary committee investigation for players’ and fans’ misconduct in respect of week 25 match between ABC and Kwara United. The club lawyers have stated in their last letter that it was highly probable that the club will be found liable, and based on past experience, the club could be fined up to N2,000,000 among other punishments.
(iii) Depreciation has been accurately calculated at N150,000 in respect of the accounting period.
(iv) Other match takings not yet remitted by the club’s agent amounted to N2,600,000.
You are required to:
Prepare the Club’s Statement of Income and Expenditure in vertical format for the year ended 31 October 2013.
Find Related Questions by Tags, levels, etc.
- Tags: Income and Expenditure Statement, Not-for-Profit Accounts
- Level: Level 1
- Topic: Accounts of Not-for-Profit Entities
- Series: MAY 2014