Theory question 108
Not-for-Profit OrganisationsBoyson social Club presented the following statements for the year ended 31st December, 2016.
Boyson Social Club Receipts and Payments Account (Le)
Receipts: Balance b/f 5,700; Subscriptions 54,500; Bar Sales 13,040; Fun fair proceeds 4,300; Donations 2,000; Life membership dues 5,400; Sale of magazines 12,560 = 97,500
Payments: Maintenance of building 12,600; Maintenance of grounds 6,400; Prizes for fun fair 8,400; Bar purchases 8,000; Bar expenses 2,000; Funeral expenses 10,200; Staff salaries 30,000; General expenses 3,600; Donations to hospital 12,500; Printing of magazines 5,300; Balance c/d 11,000 = 97,500
Additional Information (01/01/16 / 31/12/16, Le):
Subscription-in-arrears 3,900 / 7,400
Subscription-in-advance 8,400 / 6,300
Bar debtors 2,630 / 3,930
Bar stock 1,500 / 2,200
Bar expenses owing 540 / 370
Five new members had not paid membership dues of Le 300 each for the year.
You are required to prepare for Boyson Social Club for the year ended 31/12/16. (a) Subscriptions Account (b) Bar Trading Account (c) Income and Expenditure Account for the year ended 31st December, 2016.
Show the model answer
(a) Subscriptions Account (Le): Dr balance b/d (arrears) 3,900; income and expenditure 60,100; balance c/d (advance) 6,300 = 70,300 | Cr balance b/d (advance) 8,400; cash 54,500; balance c/d (arrears) 7,400 = 70,300.
(b) Bar Trading Account: sales (13,040 + 3,930 − 2,630) 14,340; opening stock 1,500 + purchases 8,000 − closing stock 2,200 = cost of sales 7,300; gross profit 7,040; less bar expenses (2,000 + 370 − 540) 1,830; bar profit 5,210.
(c) Income and Expenditure Account: Income – subscriptions 60,100; bar profit 5,210; fun fair proceeds 4,300; donations 2,000; membership dues (5,400 + 5 × 300 unpaid) 6,900; sale of magazines 12,560 = 91,070. Expenditure – maintenance of building 12,600; maintenance of grounds 6,400; prizes for fun fair 8,400; funeral expenses 10,200; printing of magazines 5,300; staff salaries 30,000; general expenses 3,600; donations to hospital 12,500 = 89,000. Surplus of income over expenditure Le 2,070.
Subscription income from the account; the five members' unpaid dues (1,500) are added to membership-dues income.