CHAPTER 5


Question 8 Included among the assets and liabilities of Drumcharley Community Club on 01/01/2012 were the following: hall and amenities €170,000, equipment €45,000, shop stock €2,000, shop debtors €400, shop creditors €150, life membership €25,000, levy reserve fund €15,000, light and heat due €150, subscriptions due €500, 5% government investments €15,000, investment income due €200, 7% loan €40,000.


Fixed Assets are given at cost and depreciation has been accumulated for two years. The following is the receipts and payments account for the year ended 31/12/2012: Receipts


€ Balance


Investment Income Donations


Fundraising Event Income


Subscriptions Shop Receipts


Catering Receipts Balance 40,000 Payments Purchases (Shop)


700 General Expenses 400 Equipment


10,000 Fundraising Expense


30,000 7,000


95,100 47,600


Transfer to Credit Union with 2% return 31/06/2012


7,000 Catering Expenses Balance


€ 2,000


12,000 7,000 4,000


15,000 7,500


47,600 95,100


Additional information given by the treasurer of Drumcharley Community Club on 31/12/2012 was as follows: 1 Shop stock on 31/12/2012 was €500. 2 Shop debtors and creditors on 31/12/2012 were €150 and €50 respectively. 3 Equipment is to be depreciated at the rate of 10% of cost. 4 Hall and amenities owned on 31/12/2012 are to depreciated at 2% of cost. 5 Subscriptions include: (i) Two life memberships of €500 each. (ii) Levy of €300 on 51 members for 2012. (iii) Subscriptions paid in advance by members for 2013 amounted to €500. 6 Life membership was to be written off over a 10-year period commencing in 2012.


5


You are required to: (a) Show the club’s Accumulated Fund (capital) on 01/01/2012. (b) Show the Income and Expenditure Account for the year ended 31/12/2012. (c) Show the club’s Balance Sheet on 31/12/2012.


Don’t forget to subtract accumulated depreciation in the Accumulated Fund on 01/01/2012


Theory Questions


1 What are the aims of a club? 2 What is a Special Purpose Trading Account?


3 What is life membership? 4 How do you deal with life membership write-off in the accounts?


5 What is a levy? 6 What is a Receipts and Payments Account?


7 What is an Income and Expenditure Account?


67


TIP


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