5.4. Clubs and societies
A subsection of Accounting, 7707, through 5. Preparation of financial statements
Listing 10 of 22 questions
The ZED Sports Club has a shop which sells sportswear. The following details relate to the shop for the year ended 29 February 2020. $ Opening inventory Closing inventory Purchases Mark-up 40% REQUIRED Calculate the shop sales for year ended 29 February 2020. All the shop sales and purchases are for cash. All the club’s receipts are paid into the bank and all payments are made by cheque. On 1 March 2019 the club’s bank balance was overdrawn by $845. In addition to the shop sales and purchases, the following receipts and payments were made during the year ended 29 February 2020. $ Subscriptions received 11 400 Competition fees received Payments for competition prizes Purchases of fittings 4 000 Rent and insurance 4 575 Wages of shop assistant 2 000 REQUIRED Prepare the receipts and payments account for the ZED Sports Club for the year ended 29 February 2020. Balance the account and bring down the balance on 1 March 2020. ZED Sports Club Receipts and Payments Account for the year ended 29 February 2020 Date ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… Details …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… $ ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… Date ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… ……… Details …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… …….………………… $ ……… ……… ……… ……… ……… ……… …… ……… ……… ……… ……… ……… The club’s bank statement at 29 February 2020 showed a positive balance of $7162. On comparing the bank statement with the cash book, the treasurer found: Competition fees, $260, had not been recorded by the bank. A cheque paid for $25 for competition prizes had been charged twice by the bank. The payment for fittings, $4000, was made on 27 February 2020, and had not been recorded on the bank statement. REQUIRED Prepare the bank reconciliation statement for ZED Sports Club at 29 February 2020. ZED Sports Club Bank Reconciliation Statement at 29 February 2020 State three differences between a receipts and payments account and an income and expenditure account. Receipts and payments account Income and expenditure account
7707_s20_qp_21
THEORY
2020
Paper 2, Variant 1
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The Favourite Book Club was formed several years ago. The subscription amount of $52 per annum has remained unchanged since the club started. All subscriptions are paid by cheque or credit transfer. The treasurer provided the following information. At 1 January At 31 December $ $ Subscriptions in advance Subscriptions in arrears Insurance paid in advance Cash at bank For the year to 31 December 2022: Receipts $ Subscriptions received Payments Rent paid Insurance paid General expenses paid The club had 128 members in 2021 and 120 in 2022. The treasurer is aware that 4 current members will not pay their subscriptions for 2022. She has decided to write these subscriptions off. REQUIRED Prepare the subscriptions account for the year ended 31 December 2022. Balance the account and bring down the balances on 1 January 2023. Favourite Book Club Subscriptions account Date Details $ Date Details $ Prepare the income and expenditure account for the year ended 31 December 2022. Favourite Book Club Income and Expenditure Account for the year ended 31 December 2022 $ $ The treasurer is considering increasing the subscription amount in order to obtain sufficient funds to purchase computer equipment. The equipment would cost $400 and would be used to maintain the club records. REQUIRED Advise the treasurer whether she should fund the purchase of the computer equipment by increasing the subscription amount. Justify your answer by making points for and against increasing the subscription amount. Calculations are not required. State the meaning of the following terms: receipts and payments account accumulated fund
7707_s23_qp_22
THEORY
2023
Paper 2, Variant 2
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Questions Discovered
22