- 20 Marks
FA – L1 – Q86 – Preparation of not-for-profit accounts
Prepare income and expenditure account and statement of financial position for Sunridge Golf Club for the year ended 31 March 20X9.
Question
The treasurer of the Sunridge Golf Club has prepared the following receipts and payments account for the year ended 31 March 20X9.
| N₦(000) | |||
|---|---|---|---|
| Balance at 1 April 20X8 | 682 | Functions | 305 |
| Subscriptions | 2,930 | Repairs | 65 |
| Functions | 367 | Telephone | 67 |
| Sale of land | 1,600 | Extension of club house | 600 |
| Bank interest | 60 | Furniture | 135 |
| Bequest (legacy) | 255 | Heat and light | 115 |
| Sundry income | 46 | Salary and wages | 2,066 |
| Sundry expenses | 110 | ||
| Balance at 31 March 20X9 | 2,520 | ||
| 5,940 | 5,940 |
(a) Subscriptions received included N₦65,000 which had been in arrears at 31 March 20X8 and N₦35,000 which had been paid for the year commencing 1 April 20X9.
(b) Land sold had been valued in the club’s books at cost N₦500,000.
(c) Accrued expenses
| 31 March 20X8 N₦(000) | 31 March 20X9 N₦(000) | |
|---|---|---|
| Heat and light | 32 | 40 |
| Salaries and wages | 12 | 14 |
| Telephone | 14 | 10 |
| Total | 58 | 64 |
(d) Depreciation is to be charged on the original cost of assets appearing in the books at 31 March 20X9 as follows:
- Buildings: 5%
- Fixtures and fittings: 10%
- Furniture: 20%
(e) The following balances are from the club’s books at 31 March 20X8:
- Land at cost: N₦4,000,000
- Buildings at cost: N₦3,200,000
- Buildings allowance for depreciation: N₦860,000
- Fixtures and fittings at cost: N₦470,000
- Fixtures allowance for depreciation: N₦82,000
- Furniture at cost: N₦380,000
- Furniture allowance for depreciation: N₦164,000
- Subscriptions in arrears (including N₦15,000 irrecoverable – member had emigrated): N₦80,000
- Subscriptions in advance: N₦30,000
Required:
Prepare an income and expenditure account for the year ended 31 March 20X9 and a statement of financial position as at that date.
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