Chapter 17 Non-profit-making organisations (clubs and societies)

Some discretion should be shown in accepting the presentation of answers to the questions in this chapter.
Students may present their work in forms other than the presentations given below. It is suggested that two
marks should be reserved in the mark scheme as a reward for good presentation.)

Q1 The Civic Athletics Club

(a) Statement of Affairs at 1 June 2003

$ $
Equipment 4 700
Stock: Refreshments 150
Subscriptions owing 330
Bank 4 650
9 830
Less Creditors refreshments 15
Accumulated fund at 1 June 2004 9 815

(b) Refreshments Trading Account for the year ended 31 May 2004
$ $
Takings 4 112
Cost of sales
Stock at 1.6.03 150
Purchases 2 679
2 829
Stock at 30.5.04 180 2 649
Gross profit 1 463
Staff wages 900
Transferred to Income and Expenditure Account 563

(c) Income and Expenditure Account for the year ended 31 May 2004
$ $
Subscriptions (7970 310 + 275) 7 935
Profit on refreshments 563
Dance sale of tickets 1 897
Profit on sale of equipment 24
Donation 90
10 509

Wages 3 100
Rent of rooms 540
Travelling expenses 995
Subscriptions written off 20
Depreciation equipment 408 5 063
Surplus of income over expenditure 5 446
(d) Balance Sheet at 31 May 2004
$ $
Equipment 6 000
Stock food 180
Subscriptions owing 275
Bank 8 846
9 301
Less Creditors for food 40 9 261
15 261

Accumulated fund at 1 June 2004 9 815

Surplus for the year 5 446
15 261

Q2 Howzidun Magic Club

(a) Statement of Affairs at 1 July 2003

$
Equipment 7 000
Stock tricks and props 1 600
Subscriptions owing 600
Deposit account 10 000
Bank 16 800
36 000
Creditors tricks and props 400
Accumulated fund at 1 July 03 35 600

(b) Shop Trading Account for the year ended 30 June 2004
$ $
Takings 12 348
Less Cost of sales
Stock at 1.7.03 1 600
Purchases (8220 + 210 400) 8 030
9 630
Stock at 1.6.04 1 850 7 780
Gross profit 4 568
Wages 6 000
Loss transferred to
Income and Expenditure Account 1 432

(c) Subscriptions account for the year ended 30 June 2004

$ $
Subscriptions received 10 730
Less Arrears from 2003 600
Arrears received (15 $30) 450 (450)
Arrears written off 150
Subscriptions for 2004 (8 000)1
Subscriptions in advance at 30.6.04 (57 $40) 2 280
1
Entry in Income and Expenditure Account in (d).
(d) Income and Expenditure Account for the year ended 30 June 2004
$ $
Subscriptions 8 000
Admission to entertainments 9 456
Annual dance 3 720
Less Expenses 2 600 1 120
Grant from local council 8 000
26 576
Loss transferred from Shop Trading Account 1 432
Subscriptions written off 150
Secretarys expenses 2 125
Depreciation of equipment 2 400 6 107
Surplus of income over expenditure 20 469

(e) Balance Sheet at 30 June 2004

$ $
Equipment 9 600
Current assets
Stock of tricks and props 1 850
Council grant due 4 000
Deposit account 30 000
Bank 13 775
49 625
Creditors for tricks and props 210
Subscriptions in advance 2 280 2 490 47 135
56 735

Accumulated fund at 1 July 2003 35 600

Surplus of income over expenditure 20 469
56 069
The Disappeared Wizards Memorial Fund 666
56 735

Q3 The Taupo Sailing Club

Workings Statement of Affairs at 1.4.03
$ $
Fixed Assets 959 000
Stock of refreshments 1 250
Subscriptions in arrears 3 000
Bank 94 000
1 057 250
Subscriptions in advance 6 000
Creditors for refreshments 1 030 7 030
Accumulated fund at 1.4.03 1 050 220

(a) Refreshments Trading Account

$ $
Takings 77 000
Stock at 1.4.03 1 250
Purchases (53 000 1030 + 970) 52 940
54 190
Stock at 31.03.04 1 600 52 590
Gross profit 24 410
Wages 14 400
Surplus transferred to Income and Expenditure 10 101
 Income and Expenditure Account for the year ended 31 March 2004
$ $ $
Hire of boats (43 000 + 34 000) 77 000
Less Repairs and maintenance 24 750
Depreciation 5% of (465 000 + 61 000) 26 300 51 050 25 950
Training school 34 500
Less Wages (16 500 + 700) 17 200 17 300
Subscriptions (186 000 + 2000 + 6000 3400 3000) 187 000
Yacht racing competition 28 900
Less Expenses 13 000 15 900
Refreshment bar 10 010
256 760
Sundry expenses 26 000
Depreciation: freehold premises, boatyard and
launch facilities 21 200
Fixtures and fittings and yacht
maintenance shop 7 000 54 200
Surplus of income over expenditure 202 560

(b) Balance Sheet at 31 March 2004

$ $
Fixed assets
Freehold premises (350 000 17 500) 332 500
Boats and yachts (526 000 26 300) 499 700
Yacht maintenance shop (42 000 4200) 37 800
Boatyard and launch facilities (74 000 3700) 70 300
Fixtures and fittings (28 000 2800) 25 200
965 500
Stock of refreshments 1 600
Subscriptions in arrears 2 000
Bank 290 500
294 100
Creditors (1350 + 970 + 700 + 400) 3 420
Subscriptions in advance 3 400 6 820 287 280
1 252 780

Accumulated fund at 1 April 2003 1 050 220

Surplus of income over expenditure 202 560
1 252 780

Q4 The Abracamagic Club

(a) Accumulated Fund at 1 October 2000
$
Equipment 8 000
Shop stock 500
Cash 50
Bank 8 400
Deposit account 15 000
31 950
Less Creditors for shop 1 450
Fund at 1 October 2000 30 500
(b) Shop Trading Account for the year ended 30 September 2001
$ $
Sales 7 168
Cost of sales
Stock at 1.10.00 500
Purchases (3745 1450 + 1260) 3 555
4 055
Less Stock at 30.9.2001 850 3 205
Gross profit 3 963
Shop wages 4 000
Net loss ( 37)

(c) Subscriptions Account

2000 $ 2000 $
Oct 1 Debtors (15 40) b/d 600 Oct 1 Creditors (12 40) b/d 480
2001 2001
Sep 30 Income & Expenditure a/c 6 000 Sep 30 Bank 6 435
In advance (7 45) 315
6 915 6 915
Oct 1 In advance b/d 315

(d) Income and Expenditure Account for the year ended 30 September 2001
$ $
Income
Subscriptions 6 000
Cash taken at door 3 500
Annual dance receipts 1 400
Less cost 1 490 (90)
Shop loss (37)
Donations 600
Grant from local council 10 000
Deposit account interest 800
20 773
Expenditure
Rent 8 000
General expenses (1500 + 65) 1 565
Depreciation of equipment 400 965
Surplus of income over expenditure 10 808