BBFA1023 FINANCIAL ACCOUNTING

2015-TL

Tutorial 3 Accounting for non-profit organisation

Question 1
A summary of the Lakewood Football Clubs transactions for a financial
year is shown below:
Receipts and Payments Account
Receipts
RM
Balance b/d
180
Collections at matches
1,650
Profit
on
sale
of
315
refreshments

Payments
Purchase of equipment
Rent for football pitch
Printing and stationery
Secretarys expenses
Repairs to equipment
Wages
Miscellaneous expenses
Balance c/d

2,145
Additional information:
1. At 1 January, equipment was valued at RM500.
2. All equipment are to be depreciated at 20% on cost.
3. At 31 December, rent paid in advance was RM60.
4. At 31 December, RM33 were owing for printing charges.
Required:

RM
125
300
65
144
46
520
66
879
2,145

Question 2
The treasurer of Lovely Bear Club has prepared the following receipts and
payments account for the year ended 31 December:
Receipts and Payments Account
Receipts
RM
Balance at 1 Jan
1,540
Entrance fees
2,175
Subscription, previous
200
year
Subscription, current
3,890
year
Subscription in advance
1,200
Locker rents
Green fees

Payments
Rates
Stationery
General expenses
Wages

1,540

Extension to
clubhouse
960 Repairs and renewals
2,670 Loan interest
Balance at 31 Dec
12,635

350
75
1,440
8,518
12,635

Additional information:
1. As on 31 December last financial year, the book value of the
clubhouse was RM17,425 (cost RM20,150) on which there was a loan
of RM12,000 at 12% p.a.
2. The current assets and liabilities of the club are as follows:
st

Prepare for Lakewood Football Club the:

RM
287
75
350

1 J an
RM

st

31 Dec
RM

BBFA1023 FINANCIAL ACCOUNTING

(a) Income and expenditure account for the year ended 31 December
(b) Statement of financial position as at 31 December

2015-TL

Locker rent accrued

Rates accrued
General expenses accrued
Subscriptions due but not received

200
85
15
200

300
110
10
315

3. Depreciation on the clubhouse is charged on a straight-line basis at 5%

on cost, with a full years charge being made in the year of
acquisition.

BBFA1023 FINANCIAL ACCOUNTING

Required:
With regards to the Lovely Bear Club:
(a) Prepare a statement showing the accumulated funds of the club as at
1st
January
(b) Prepare the income and expenditure account for the year ended 31
December.
(c) Prepare the following accounts for the year ended 31 December:
(i)
Locker rent account;
(ii)
Rates account;
(iii) General expenses account and
(iv) Subscription account
(d) Prepare the statement of financial position as at 31 December

2015-TL

You have been approached by the club's treasurer for help. In addition to
the above information in the Receipts and Payments Account, the club's
treasurer has provided the following additional information as at 31
December
1) Members still have not paid RM240 for the hire of equipment during
the year.
2) Bar suppliers amount outstanding as at 31 December amounted to
RM900.
3) Accrued general expenses is RM1,800.
4) The annual depreciation rate for equipment is 20% and 10% for
fixture and fittings.
5) There were no bar inventories as at 31 December

Question 3
The Frasers Hill Golf Club commenced its operations on 1 January. A year
after its operation, the club's treasurer has presented the Receipts and
Payments Book for your inspection.
Receipts and Payments Account for the year ended 31 December
RM
RM
Entrance fees: new members 4,248 Rent
2,700
Subscriptions for this FY
17,010 Printing and stationery
1,368
Subscriptions for next FY
936 Wages and salaries
4,680
Bar takings
18,216 General expenses
1,926
Hire charges received
1,746 Bar expenses
1,800
Interest from fixed deposit
72 Newspapers and periodicals
324
Sundry receipts
342 Equipment
4,320
Contributions by committee
3,600 Fixture and fittings
8,380
Fixed deposit
4,000
Bar suppliers
14,310
Open a bank current account 2,000

Required:
Prepare the following for The Frasers Hill Golf Club:
(a) Bar Trading Account for the year ended 31 December;
(b) Income and Expenditure Account for the year ended 31 December;
(c) Statement of financial position as at 31 December.

Q1.

RM
a) Lakewood Football Club
Income and Expenditure Account for the year ended 31st December

Income
Collections from matches
Profit on sale of refreshments.

RM
1,650
315

RM

BBFA1023 FINANCIAL ACCOUNTING

1,965
Expenses
Rent for football pitch (300 60)
Printing and stationery (65 +33)
Secretarys expenses
Repairs to equipment
Wages
Miscellaneous expenses
Depreciation of Equipment (500+125)
x 20%

240
98
144
46
520
66
125

19,365

b) Lakewood Football Club

Statement of Financial Position for the year ended 31st December
RM
RM
RM
Non- Current Assets
Equipment (500 + 125)
625
Less: Accumulated Dep.
(125)
500
Current Assets
Bank
879
Rent paid in advance
60
939
1,439
Financed by
Accumulated Funds as at 1st Jan (180 +
680
500)
Add: Surplus
726
Accumulated Funds as at 31st Dec
1,406
Current Liabilities
Accrued Printing Charges
Q2.

15
7,265
19,365

2015-TL

b)

1,239
726

Surplus for the year

General Expenses Accrued

Accumulated Funds as at 1st Jan

Lovely Bear Club

Income and Expenditure Account for the year ended 31st December
RM
RM
RM
Income
Entrance fees
2,175
4,205
Subscriptions
Locker rents
1,060
Green fees
2,670
10,110
Expenses
Rates
312
Stationery
75
General expenses
345
Wages
1,540
Repairs and renewals
75
Depreciation of Clubhouse
1,02
(20,500x5%)
5
Loan interest
1,440
(4,812)
Surplus for the year
5,298

33
1,439

a) Statement of Affairs as at 1st January

Bank
Subscriptions accrued
Clubhouse
Loan
Locker rent Accrued
Rates Accrued

Debit (RM)
1,540
200
17,425

Credit (RM)

12,000
200
85

c)
Date
Jan 1
Dec 31

i) Locker Rent Account

Particulars RM
Date
Particulars
Bal b/d
200 Dec 31 Bank
IEA
1,060
Bal c/d

RM
960
300

BBFA1023 FINANCIAL ACCOUNTING

Jan 1
Date
Dec 31

Date
Dec 31

Date
Jan 1

Bal b/d
Particulars
Bank
Bal c/d

1,260
300
ii) Rates Account
RM
Date
287 Jan 1
110 Dec 31
397
Jan 1

1,260

2015-TL

Accrued Subscriptions

315
9,133
25,883

Particulars
Bal b/d
IEA

RM
85
312
397
110

Bal b/d

iii) General Expenses Account

Particulars RM
Date
Particulars
Bank
350 Jan 1
Bal b/d
Bal c/d
10 Dec 31 IEA
360
Jan 1
Bal b/d
iv) Subscriptions Account
Particulars RM
Date
Particulars
Bal b/d
200
Dec 31 Bank
IEA
4,205
Bal c/d
Bal c/d
1,200
5,605

RM
15
345
360
10

Financed by
Accumulated Funds as at 1st Jan
Add: Surplus
Accumulated Funds as at 31st Dec

7,265
5,298
12,563

Non-Current Liabilities
Loan
Current Liabilities
Accrued Rates
Accrued General Expenses
Prepaid Subscriptions

12,000
24,563
110
10
1,200
1,320
25,883

RM
5,290
315
5,605
Q3.
a)

d) Lovely Bear Club

Statement of Financial Position for the year ended 31st December
RM
RM
RM
Non- Current Assets
Clubhouse
20,500
Less: Accumulated Depreciation
(3,750)
16,750
Current Assets
Bank
8,518
Accrued Locker Rent
300

Frasers Hill Gold Club

Bar Trading Account for the year ended 31st December
RM
RM
Bar takings
Less: Cost of Sales
Opening Bar Inventories
Bar purchases (Note 1)
Less: Closing Bar Inventories
Cost of Sales
Gross Profit

RM
18,216

0
15,210
15,210
0
(15,210)
3,006

BBFA1023 FINANCIAL ACCOUNTING

Less: Bar expenses

Bar Net Profit

(1,800)
1,206

Note 1:

Date
Dec 31

Particulars
Bank
Bal c/d

ii) Bar Suppliers Account

RM
Date
Particulars
14,310 Dec 31 Bar
Purchases
900
15,210

Rent
Printing and stationery
Wages and Salaries
General Expenses (1,926 + 1,800)
Newspaper and periodicals
Depreciation of Equipment
Depreciation of fixture and fittings

2,700
1,368
4,680
3,726
324
864
838

2015-TL

(14,500)
RM
15,210
Surplus for the year

13,964

15,210

b)
Lovely Bear Club
Income and Expenditure Account for the year ended 31st December
RM
RM
RM
Income
Entrance fees
4,248
17,01
Subscriptions
0
Bar Net Profit
1,206
Hire Charges (240 + 1,746)
1,986
Fixed Deposit Interest
72
Sundry Receipts
342
Contributions by committee
3,600
28,464
Expenses

c)
Frasers Hill Gold Club
Statement of Financial Position for the year ended 31st December
RM
RM
RM
Non- Current Assets
Equipment
4,320
Less: Accumulated Depreciation
864
3,456
Fixture and Fittings
8,380
Less: Accumulated Depreciation
838
7,542
10,998

BBFA1023 FINANCIAL ACCOUNTING

Current Assets
Fixed Deposit
Bank
Cash (46,170 45,808)
Accrued hire charges

4,000
2,000
362
240
6,602
17,600

Financed by
Accumulated Funds as at 1st Jan

2015-TL

Add: Surplus
Accumulated Funds as at 31st Dec
Current Liabilities
Bar Suppliers
Accrued General Expenses
Prepaid Subscriptions

13,964
13,964
900
1,800
936
3,636
17,600