Clubs

1
Clubs Societies
Done by Koh Ngin Lan Edna
2
Preparation of Final Accounts
Recap What have we learnt ?

• Sole Proprietorship
• Trading Profit Loss Account
• Balance Sheet

• Partnership
• (see sole proprietorship)
• Profit Loss Appropriation A/c
• Interest on drawings
• Interest on capital
• Salary
• Share of profits
• Balance Sheet
• Capital A/c
• Current A/c

3
What do they have in common?

• They are business organisations
• involved in trading activities, ie. the buying
  selling of goods or services
• operate solely to make a profit for their owners

4
Clubs Societies
Topic for Today
Non-Trading Organisations
5
Lesson Objectives

• At the end of the lesson, you should be able to
• state the difference between a trading and
  non-trading organisation
• distinguish between the different accounts kept
  by a trading and non-trading organisation

6
Non-Trading Organisations
What are they?

• Clubs, societies and associations
• formed to cater and promote
• the sporting, cultural and recreational interests
  of its members.

They are not formed with the purpose of making
profits.
7
Clubs Societies
School
8
Clubs Societies
School
Guitar Club
Mathematics Society
social, music
Swimming Club
social, maths puzzles
sports, outdoor activities
What are the sources of income expenses?
9
Clubs Societies

• What are some of the non-trading organisations in
  Singapore?
• Purpose of existence?
• Sources of income?
• Expenses incurred?

10
In Singapore
Non-Profit Organisations

• CDAC, Mendaki, Sinda
• Purpose
• To provide tuition schemes at affordable rates
• To assist low-income, low-skilled workers to
  upgrade their skills
• To enhance the well-being of the community
• Income
• Donations, grants from the Govt.
• Expenses
• Day-to-day activities, scholarships, training
  programmes

11
In Singapore

• National Kidney Foundation (NKF)
• Purpose
• To provide kidney patients with dialysis
  treatment drugs at affordable cost.
• Income
• Donations only
• Expenses
• Day-to-day activities, dialysis machines,
  research.

12
In Singapore
Recreational Activities

• Chinese Swimming Club
• Purpose
• To provide facilities activities that cater to
  the sports, recreation social needs of the
  family individual
• Income
• Entrance fees, subscriptions fees, restaurant
  karaoke operations, fruit machines video games
• Expenses
• Day-to-day activities, eg. repairs maintenance,
  utilities

13
Clubs Societies
Compare the income of a trading non-trading
organisation

• Trading Concern
• Sale of goods
• Receipts from services
• Rent received
• Commission received
• Discount received
• Interest received
• Bad debts recovered
• Profits from the sale of fixed assets

• Non-Trading
• Subscriptions
• Entrance fees
• Profit from sale of refreshments
• Interest received
• Donations
• Fun fair
• Life membership subscriptions
• Grants from the Govt.

14
Clubs Societies
Do you remember?
Receipts
Expenditure
Capital
Revenue
Capital
Revenue
15
Clubs Societies
Revenue Receipts

• Trading Concern
• Sale of goods
• Other income
• Cash discount received for prompt payment
• Commission revenue
• Rent revenue
• Interest on deposit

• Clubs Societies
• Membership subscriptions
• Donations
• Proceeds from social activities
• Receipts from sale of refreshments in
  bar/restaurant
• Rental fees for courts, lockers

16
Clubs Societies
Revenue Expenditure

• Trading Concern
• Cost of goods sold
• Administrative expenses, staff wages, stationery,
  utilities, rental
• Distributive expenses
• Transport, commission, bad debts
• Depreciation of fixed assets

• Clubs Societies
• Entertainment expenses
• Competition prizes
• Repairs maintenance
• Sundry expenses
• Utilities, staff wages
• Honorarium
• Depreciation of fixed assets
• Bar/ Restaurant expenses

17
Clubs Societies
Capital Receipts

• Trading Concern
• Bank loans
• Owners contribution

• Clubs Societies
• Legacies
• Entrance fees (if capitalised)
• Life membership fees

18
Clubs Societies
Capital Expenditure

• Trading Concerns
• Purchase of fixed assets

• Clubs Societies
• Purchase of fixed assets
• Office equipment
• Sports equipment
• Furniture, billiard tables
• Extension of club houses, including legal fees

19
Clubs Societies

• Similar to trading concerns, clubs societies
  need to keep accounts according to accounting
  concepts principles
• Financial statements are presented to members
  during the Annual General Meeting (AGM)
• Also submitted to the Registrar of Societies

How are the accounts of clubs societies
different from trading concerns?
20
Clubs Societies
Recall that
Difference

• Trading Concern
• Trading Account
• Gross Profit
• Net Sales Cost of Sales

• Clubs Societies
• Bar Trading A/c
• Trading profit
• Trading Revenue-Trading Expenses

21
Clubs Societies
Recall that
Difference

• Trading Concern
• Cash or Bank Account
• Records cash inflows outflows

• Clubs Societies
• Receipts Payments Account
• Is actually a cash book by another name

22
Clubs Societies
Difference
Recall that

• Trading Concern
• Profit Loss A/c
• Records net profit or loss

• Clubs Societies
• Income Expenditure A/c
• Same principle as Profit Loss A/c
• Records surplus or deficit

23
Clubs Societies
Difference
Recall that

• Clubs Societies
• Balance Sheet
• Assets
• Accumulated Fund
• Liabilities

• Trading Concern
• Balance Sheet
• Assets
• Owners Equity
• Liabilities

24
Clubs Societies
What have we learnt today?

• Distinguish between trading non-trading
  concerns profit motive?
• Different accounts used
• Receipts Payments A/c
• Bar Trading A/c
• Income Expenditure A/c
• Accumulated Fund

25
Clubs Societies
End of Lesson 1 2 periods (70 min)
26
Do you know ?

• What are the differences between the Receipts
  Payments A/c
• and
• the Income Expenditure A/c ?

27
Differences

• Receipts Payments A/c
• 1. Summary of total receipts and payments of cash
  and cheques.
• ? Equivalent to a summarised form of a Cash Book
  of a trading concern.

• Income Expenditure A/c
• 1. Summary of the operating expenses and revenue
  items.
• ? Equivalent to a Profit and Loss Account of a
  trading concern.

28
Differences
Differences

• Receipts Payments A/c
• 2. Contains both capital and revenue expenditure
  as well as capital and revenue receipts.

• Income Expenditure A/c
• 2. Contains only revenue expenditure and revenue
  receipt items only.

29
Differences

• Receipts Payments A/c
• 3. Includes those revenue and capital items that
  are actually paid for and received.
• ? Items which may refer to preceding or
  succeeding periods are also included.

• Income Expenditure A/c
• 3. Includes only revenue items incurred or earned
  during the current accounting period.
• ? Excludes prepaid expenses, unearned revenue.
• ? Includes accrued expenses, accrued revenue.

30
Differences

• Receipts Payments A/c
• 4. Final balance is the balance of cash in hand,
  or cash at bank.
• Is a current asset in the Balance Sheet.
• ? Overdraft is a current liability.

• Income Expenditure A/c
• 4. Final balance shows either a surplus or a
  deficit for the period.
• ? Surplus is added to the accumulated fund in
  the Balance Sheet.
• ? Deficit is deducted from accumulated fund.

31
Presentation
Receipts and Payments Account
Debit all receipts (both capital
revenue receipts)
Credit all payments (both capital
revenue expenditure)
Income and Expenditure Account
Debit all current year revenue expenditure
Credit all current year revenue receipts
32
Exercise
Prepare the Receipts and Payments Account for
Weekend Football Club.
33

• Weekend Football Club provided you with the
  following information regarding the cash
  movements of its club
• Cash at bank as at 1 January 1999 2,000
• Receipts for the year
• Subscriptions 1,000
• Entrance Fees 400
• Collections at Matches 600
• Sale of Refreshments 350
• Payments for the year
• Football Equipment 250
• Cost of Refreshments 200
• Sundry Expenses 150
• Maintenance of Clubhouse 500

34
Weekend Football Club Receipts and Payments
Account


1999 Jan 1 Dec 31
1999 Dec 31
Balance b/d 2,000
Football Equipment 250
Subscriptions 1,000
Cost of Refreshments 200
Entrance Fees 400
Sundry Expenses 150
Collections at Matches 600
Maintenance of Clubhouse 500
Sale of Refreshments 350
Balance c/d 3,250
4,350
4,350
2000 Jan 1
Balance b/d 3,250
35
Weekend Football Club Receipts and Payments
Account


1999 Jan 1 Dec 31
1999 Dec 31
Balance b/d 2,000
Football Equipment 250
Subscriptions 1,000
Cost of Refreshments 200
Entrance Fees 400
Sundry Expenses 150
Collections at Matches 600
Maintenance of Clubhouse 500
Sale of Refreshments 350
Balance c/d 3,250
4,350
4,350
2000 Jan 1
Balance b/d 3,250
Can you prepare the Income and Expenditure
Account for the year ended 31 December 1999?
36
Weekend Football Club Receipts and Payments
Account


1999 Jan 1 Dec 31
1999 Dec 31
Balance b/d 2,000
Football Equipment 250
Subscriptions 1,000
Cost of Refreshments 200
Entrance Fees 400
Sundry Expenses 150
Collections at Matches 600
Maintenance of Clubhouse 500
Sale of Refreshments 350
Balance c/d 3,250
4,350
4,350
2000 Jan 1
Balance b/d 3,250
Weekend Football Club Income and Expenditure
Account for the year ended 31 December 1999
Expenditure
Income
37
Weekend Football Club Receipts and Payments
Account


1999 Jan 1 Dec 31
1999 Dec 31
Balance b/d 2,000
Football Equipment 250
Subscriptions 1,000
Cost of Refreshments 200
Entrance Fees 400
Sundry Expenses 150
Collections at Matches 600
Maintenance of Clubhouse 500
Sale of Refreshments 350
Balance c/d 3,250
4,350
4,350
2000 Jan 1
Balance b/d 3,250
Weekend Football Club Income and Expenditure
Account for the year ended 31 December 1999
Expenditure
Income
Cost of Refreshments 200
Subscriptions 1,000
Sundry Expenses 150
Entrance Fees 400
Collections at Matches 600
Maintenance of Clubhouse 500
Sale of Refreshments 350
Surplus 1,500
2,350
2,350
38
End of lesson 2 1 period (35 min)
39
Trading Account

• Clubs and societies are not formed with a view
  to make profit.
• Clubs may operate a restaurant or bar selling
  refreshment and food to members.
• A Trading Account is prepared to determine the
  profit or loss.
• Records of stock of refreshment, refreshment
  debtors and creditors will be needed.
• Adjustments to find out the exact amount of
  sales, purchases and other expenses will be
  required to prepare the Trading Account.

40
Example
Preparing the Refreshment Trading Account for
Weekend Golf Club
41
Weekend Golf Club provided the following
information
Receipts and Payments Account for the year ended
31 June 2000


Refreshment debtors 4,000
Refreshment creditors 1,000
Sale of refreshment 8,000
Wages for the preparation of refreshments
3,000
Cost of refreshment 5,000
Additional Information
31 June 2000
1 July 1999


Refreshment stock 2,000 3,500
Refreshment debtors 500 6,500
Refreshment creditors 900 3,000
Accrued wages for the preparation of
refreshments 700 1,000
42
Step 1 Calculate Credit Sales of Refreshments
43
Weekend Golf Club provided the following
information
Receipts and Payments Account for the year ended
31 June 2000


Refreshment debtors 4,000
Refreshment creditors 1,000
Sale of refreshment 8,000
Wages for the preparation of refreshments
3,000
Cost of refreshment 5,000
Additional Information
31 June 2000
1 July 1999


Refreshment stock 2,000 3,500
Refreshment debtors 500 6,500
Refreshment creditors 900 3,000
Accrued wages for the preparation of
refreshments 700 1,000
44
Step 1 Calculate Credit Sales of Refreshments
Refreshment Debtors Account


1999 Jul 1
2000 Jun 30
Balance b/d 500
Cash or Bank 4,000
Balance c/d 6,500
Sales 10,000
10,500
10,500
2000 Jul 1
Balance c/d 6,500
Credit sales 10,000 is the balancing figure.
45
Step 2 Calculate Total Sales of Refreshments
46
Step 2 Calculate Total Sales of Refreshments

Credit Sales of Refreshments 10,000
Cash Sales of Refreshments 8,000
Total Sales of Refreshments 18,000
18,000 is transferred to the Trading Account
47
Step 3 Calculate Credit Purchases of Refreshments
48
Weekend Golf Club provided the following
information
Receipts and Payments Account for the year ended
31 June 2000


Refreshment debtors 4,000
Refreshment creditors 1,000
Sale of refreshment 8,000
Wages for the preparation of refreshments
3,000
Cost of refreshment 5,000
Additional Information
31 June 2000
1 July 1999


Refreshment stock 2,000 3,500
Refreshment debtors 500 6,500
Refreshment creditors 900 3,000
Accrued wages for the preparation of
refreshments 700 1,000
49
Step 3 Calculate Credit Purchases of Refreshments
Refreshment Creditors Account


1999 Jul 1
2000 Jun 30
Balance b/d 900
Cash or Bank 1,000
Purchases 3,100
Balance c/d 3,000
4,000
4,000
2000 Jul 1
Balance c/d 3,000
Credit purchases 3,100 is the balancing figure.
50
Step 4 Calculate Total Purchases of Refreshments

Credit Purchases of Refreshments 3,100
Cash Purchases of Refreshments 5,000
Total Purchases of Refreshments 8,100
8,100 is transferred to the Trading Account
51
Step 5 Calculate wages for the preparation of
refreshment
52
Weekend Golf Club provided the following
information
Receipts and Payments Account for the year ended
31 June 2000


Refreshment debtors 4,000
Refreshment creditors 1,000
Sale of refreshment 8,000
Wages for the preparation of refreshments
3,000
Cost of refreshment 5,000
Additional Information
31 June 2000
1 July 1999


Refreshment stock 2,000 3,500
Refreshment debtors 500 6,500
Refreshment creditors 900 3,000
Accrued wages for the preparation of
refreshments 700 1,000
53
Step 5 Calculate wages for the preparation of
refreshment
Wages Account


1999 Jul 1
2000 Jun 30
Balance b/d 700
Cash or Bank 3,000
Trading A/c 3,100
Balance c/d 1,000
4,000
4,000
2000 Jul 1
Balance c/d 1,000
Wages 3,100 incurred for the year is the
balancing figure.
54
Step 6 Prepare the Refreshment Trading Account
Weekend Golf Club
Refreshment Trading Account for the year ended 30
June 2000


Opening Stock 2,000
Sales 18,000
Add Purchases 8,100
10,100
Less Closing Stock (3,500)
Cost of Sales 6,600
Gross Profit 11,400
18,000
18,000
Gross Profit 11,400
Wages for preparation of refreshment
3,100
Net Profit 8,300
11,400
11,400
55
Step 7 Transferring refreshment net profit to
the Income and Expenditure Account
Weekend Golf Club
Income and Expenditure Account for the year ended
30 June 2000
Debit all current year revenue expenditure
Credit all current year revenue receipts
56
Step 7 Transferring refreshment net profit to
the Income and Expenditure Account
Weekend Golf Club
Income and Expenditure Account for the year ended
30 June 2000


Net Profit from Refreshments 8,300
57
End of lesson 3 2 periods (70 min)
58
Balance Day Adjustments

• Most records of clubs are kept using the single-
  entry system.
• Balance day adjustments are needed to get the
  necessary data to prepare the accounts.

59
Balance Day Adjustments

• Adjustments are usually made to the following
• Subscription Account to find exact
  subscription for the year.
• Trading Account to find sales, purchases,
  expenses incurred for the year.
• Other revenue generating activities to find
  net gain or loss from the event.
• Disposal of new assets and acquisition of new
  assets to record a gain or loss on disposal.

60
Balance Day Adjustments

• Adjustments are usually made to the following
• Subscription Account to find exact
  subscription for the year.
• Trading Account to find sales, purchases,
  expenses incurred for the year.
• Other revenue generating activities to find
  net gain or loss from the event.
• Disposal of new assets and acquisition of new
  assets to record a gain or loss on disposal.

61
Subscription Account

• Members subscriptions make up the main source of
  a club or societys income.
• Club needs to know its exact subscription income
  to find out if it is able to finance its normal
  operations.

Problem Not every member will pay on time.
62
Subscription Account

• Subscription is a revenue receipt and recorded in
  the Subscription Account.
• Subscription owed by members is known as
  subscription due or subscription in arrears.
• Subscription paid by members in the current
  financial year for the next financial year is
  known as subscription in advance.

63
Subscription Account

• When an arrears or advance payment happens,
• adjustments in the preparation of the
  Subscription Account have to be made
• so that only the amount of revenue earned during
  the current year
• is included in the current years Income and
  Expenditure Account
• according to the matching principle.

64
Subscriptions Account
Cr
Dr


Subscription received in advance b/d (collected
in the previous year)
Subscription in arrears b/d (not collected during
the previous year)
Income Expenditure Account (exact amount
of Subscription revenue for the current year)
Total cash received as subscription during
the current year
Subscription in advance c/d (collected for
subsequent year)
Subscription in arrears c/d (not yet received for
the current year)
65
Weekdays Country Club has the following in the
books
Receipts and Payments Account for the year ended
31 Jun 2000


Subscription 5,500
Additional information
1 Jul 1999
31 Jun 2000


Subscription in arrears 1,500 850
Subscription in advance 600 900
Question What would the Subscription Account
look like?
66
Subscriptions Account


1999 Jul 1
1999 Jul 1
Balance b/d 1,500
Balance b/d 600
2000 Jun 30
2000 Jun 30
Bank 5,500
Income and Expenditure A/c
4,550
Balance c/d 850
Balance c/d 900
6,950
6,950
2000 Jul 1
2000 Jul 1
Balance b/d 850
Balance b/d 900
In this example, the subscription for the
current year is the balancing figure.
67
Subscriptions Account


1999 Jul 1
1999 Jul 1
Balance b/d 1,500
Balance b/d 600
2000 Jun 30
2000 Jun 30
Bank 5,500
Income and Expenditure A/c
4,550
Balance c/d 850
Balance c/d 900
6,950
6,950
2000 Jul 1
2000 Jul 1
Balance b/d 850
Balance b/d 900
Income and Expenditure Account for the year ended
30 June 2000


68
Subscriptions Account


1999 Jul 1
1999 Jul 1
Balance b/d 1,500
Balance b/d 600
2000 Jun 30
2000 Jun 30
Bank 5,500
Income and Expenditure A/c
4,550
Balance c/d 850
Balance c/d 900
6,950
6,950
2000 Jul 1
2000 Jul 1
Balance b/d 850
Balance b/d 900
Income and Expenditure Account for the year ended
30 June 2000


Subscription 4,550
69
Subscriptions Account


1999 Jul 1
1999 Jul 1
Balance b/d 1,500
Balance b/d 600
2000 Jun 30
2000 Jun 30
Bank 5,500
Income and Expenditure A/c
4,550
Balance c/d 850
Balance c/d 900
6,950
6,950
2000 Jul 1
2000 Jul 1
Balance b/d 850
Balance b/d 900
Balance Sheet as at 30 June 2000


Current Assets
Current Liabilities
70
Subscriptions Account


1999 Jul 1
1999 Jul 1
Balance b/d 1,500
Balance b/d 600
2000 Jun 30
2000 Jun 30
Bank 5,500
Income and Expenditure A/c
4,550
Balance c/d 850
Balance c/d 900
6,950
6,950
Balance Sheet as at 30 June 2000


Current Assets
Current Liabilities
Subscription in advance 900
Subscription in arrears 850
71
Balance Day Adjustments

• Adjustments are usually made to the following
• Subscription Account to find exact
  subscription for the year.
• Trading Account to find sales, purchases,
  expenses incurred for the year.
• Other revenue generating activities to find
  net gain or loss from the event.
• Disposal of new assets and acquisition of new
  assets to record a gain or loss on disposal.

72
Balance Day Adjustments

• Adjustments are usually made to the following
• Subscription Account to find exact
  subscription for the year.
• Trading Account to find sales, purchases,
  expenses incurred for the year.
• Other revenue generating activities to find
  net gain or loss from the event.
• Disposal of new assets and acquisition of new
  assets to record a gain or loss on disposal.

73
Other Revenue Generating Activities

• Examples are charging for the use of club
  facilities or holding dances and socials.
• Expenses incurred from these activities must be
  deducted from the related revenue obtained to
  show a GAIN or LOSS.
• The net proceeds from such activities are part of
  the current operating revenue and recorded in the
  Income and Expenditure Account.

74
Example Everyday Dance Club held a dance
competition for its members. Registration fees
collected was 330. Prizes and refreshments for
the competitors amounted to 200. What is the
gain or loss from this event?
Everyday Dance Club
Income and Expenditure Account for the year ended
31 Jun 2000


Gain from dance competition (330-200) 130
75
Balance Day Adjustments

• Adjustments are usually made to the following
• Subscription Account to find exact
  subscription for the year.
• Trading Account to find sales, purchases,
  expenses incurred for the year.
• Other revenue generating activities to find
  net gain or loss from the event.
• Disposal of new assets and acquisition of new
  assets to record a gain or loss on disposal.

76
Disposal of Old Asset and Acquisition of New Asset

• Whenever a non-trading organisation disposes an
  asset, it can make a gain or loss due to
  previous under-provision or over-provision of
  depreciation.
• Gain or loss is usually treated as a revenue
  item.
• Gain or loss is normally not capitalised.
• Gain or loss is recorded in the Income and
  Expenditure Account.

77
Weekdays Football Club has the following in the
books
Receipts and Payments Account for the year ended
31 Jun 2000


New football equipment 300
Sale of surplus football equipment (book value
200) 150
Additional information
1 Jul 1999
31 Jun 2000


Football equipment at valuation 500 550
Questions - Is there a GAIN or LOSS on
disposal? -What is the DEPRECIATION for
the year?
78
Weekdays Football Club has the following in the
books
Receipts and Payments Account for the year ended
31 Jun 2000


New football equipment 300
Sale of surplus football equipment (book value
200) 150
Additional information
1 Jul 1999
31 Jun 2000


Football equipment at valuation 500 550
Questions - Is there a GAIN or LOSS on disposal?
79
Is there a GAIN or LOSS on disposal?
Sale of surplus football equipment
150 Book value of equipment sold 200 Loss on
sale of football equipment 50
Weekdays Football Club
Income and Expenditure Account for the year ended
31 Jun 2000


Loss on sale of football Equipment (150-200) 50
80
Weekdays Football Club has the following in the
books
Receipts and Payments Account for the year ended
31 Jun 2000


New football equipment 300
Sale of surplus football equipment (book value
200) 150
Additional information
1 Jul 1999
31 Jun 2000


Football equipment at valuation 500 550
Questions -What is the DEPRECIATION for the year?
81
What is the DEPRECIATION for the year?
2 methods to arrive at the answer .
Method 1 Balance as at 1 Jul 1999 500 Add
Purchases 300 800 Less Sale of equipment
(200) 600 Depreciation 600 - 550 50
82
What is the DEPRECIATION for the year?
2 methods to arrive at the answer .
Method 2
Football Equipment Account


Balance b/d 500
Depreciation 50
Purchases 300
Disposal 200
Balance c/d 550
800
800
83
What is the DEPRECIATION for the year?
Remember to show your working for
calculating depreciation whatever method you use
.
Weekdays Football Club
Income and Expenditure Account for the year ended
31 Jun 2000


Depreciation of football equipment 50
Loss on sale of football equipment 50
84
End of lesson 4 2 periods (70 min)
85
Accumulated Fund
What is it?

• Equivalent to the Capital Account of a trading
  concern.

Recall
For a trading concern CAPITAL ASSETS -
LIABILITIES
For a non-trading concern ACCUMULATED FUND
ASSETS - LIABILITIES
86
Accumulated Fund
What affects it?

• Legacy
• Money collected for capital purpose, eg.
  construction of
• clubhouse
• Surplus of income over expenditure

Deficit of income over expenditure is DEBITED to
the ACCUMULATED FUND
Final balance of the accumulated fund represents
the NET VALUE of the club at the end of the
accounting year.
These will increase the accumulated fund and are
CREDITED to the ACCUMULATED FUND.
87
Weekend Rollarblading Club has the following in
its books
Receipts and Payments Account


2000 Jan 1
2000 Dec 31
Balance b/d 2,000
Rent 1,500
Dec 31 Locker fees 500
Extension to clubhouse 1,900

• Subscription
• 1999 100
• 2000 300
• 2001 150

Sundry exp 120
On 1 Jan 2000, the club had the following assets
Rollarblading equipment 600
Clubhouse 12,000
Additional information

• Rent paid included 500 for accrued rent from
  the previous year.
• As at 31 Dec 2000, accrued locker fees was 210.

88
What information would I need to calculate the
Accumulated Fund as at 1 Jan 2000?
89
Weekend Rollarblading Club has the following in
its books
Receipts and Payments Account


2000 Jan 1
2000 Dec 31
Balance b/d 2,000
Rent 1,500
Dec 31 Locker fees 500
Extension to clubhouse 1,900

• Subscription
• 1999 100
• 2000 300
• 2001 150

Sundry exp 120
On 1 Jan 2000, the club had the following assets
Rollarblading equipment 600
Clubhouse 12,000
Additional information

• Rent paid included 500 for accrued rent from
  the previous year.
• As at 31 Dec 2000, accrued locker fees was 210.

90
Calculation of Accumulated Fund as at 1 Jan 2000

Assets
Receipts and Payments A/c as at 1 Jan 2000
Cash at Bank 2,000
Subscription in arrears 100
Rollarblading equipment 600
Clubhouse 12,000
14,700
Less Liabilities
Accrued rent (500)
Accumulated fund as at 1 Jan 2000 14,200
91
Presentation
Weekend Rollarblading Club
Balance Sheet as at 31 December 2000

Accumulated Fund
Balance as at 1/1/2000 14,200
Add Surplus XXX
Balance as at 31/12/2000 XXX
92
End of lesson 5 1 period (35 min)