5.4. Clubs and societies
A subsection of Accounting, 7707, through 5. Preparation of financial statements
Listing 10 of 22 questions
The K Music Club provides facilities for listening to music and also provides a refreshment bar for members. The club had the following assets and liabilities at 1 April 2019. $ Subscriptions in advance Subscriptions in arrears Cash at bank 1 570 Cash in hand Wages outstanding (refreshment bar) Inventory (refreshment bar) Fixtures and fittings at book value 11 200 REQUIRED Calculate the accumulated fund at 1 April 2019. State how the accumulated fund of a club is built up over time. The following information is available for the year ended 31 March 2020. $ Subscriptions received (all by cheque) 8 500 Subscriptions written off as irrecoverable Wages paid to refreshments bar staff 1 250 Balances at 31 March 2020 included the following. $ Subscriptions in advance Subscriptions in arrears Wages outstanding (refreshments bar) REQUIRED Calculate the refreshment bar staff wages for the year ended 31 March 2020. …………………………………………… …………………………………………………… Prepare the subscriptions account for the year ended 31 March 2020. Balance the account and bring down the balances on 1 April 2020. K Music Club Subscriptions account Date ……… ……… ……… ……… ……… ……… ……… ……… ……… Details ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… $ ……… ……… ……… ……… ……… ……… ……… ……… ……… Date ……… ……… ……… ……… ……… ……… ……… ……… ……… Details ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… ………………………… $ ……… ……… ……… ……… ……… ……… ……… ……… ……… Advise the club treasurer whether or not club members should be required to pay their subscriptions by direct debit. Justify your answer by providing two advantages and two disadvantages.
7707_s20_qp_22
THEORY
2020
Paper 2, Variant 2
Questions Discovered
22