- 20 Marks
FA – L1 – Q84 – Preparation of not-for-profit accounts
Prepare receipts and payments and income and expenditure accounts for Unity Sports Club for the year ended June 30, 20X9, using provided balances and membership data.
Question
The following balances have been obtained from the books of Unity Sports Club:
| June 30, 20X8 | June 30, 20X9 | |
|---|---|---|
| Building | 6,024,000 | 6,024,000 |
| Furniture | 3,012,000 | 3,012,000 |
| Books | 1,129,500 | 1,129,500 |
| Sports equipment | 1,807,200 | 1,807,200 |
| Investments | ||
| Advance subscription | 86,000 | 92,000 |
| Prepaid expenses | 122,000 | 176,000 |
| Expenses payable | 186,900 | 207,600 |
| Subscriptions receivable | 326,000 | 357,000 |
| Cash | 1,204,800 | 1,586,500 |
The following information is also available in respect of the year ended June 30, 20X9:
(i) Depreciation for the year has been credited directly to the asset accounts. The rates of depreciation are as follows:
- Building: 5%
- Furniture and books: 10%
- Sports equipment: 20%
(ii) The club had 600 members on June 30, 20X9. No fresh members were admitted during the year but 10 members left the club on January 1, 20X9. Subscription per member is GH¢ 500 per month.
Required:
(a) Summary of receipts and payments made during the year ended June 30, 20X9.
(b) Income and expenditure account for the year ended June 30, 20X9.
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