Accounting and Finance Not-for-Profit Organisations (Club Accounts) Advanced Higher

Transcription

1 Accounting and Finance Not-for-Profit Organisations (Club Accounts) Advanced Higher 8178

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3 November 2000 HIGHER STILL Accounting and Finance Not-for-Profit Organisations (Club Accounts) Advanced Higher Support Materials

4 TEACHER NOTE Subject: Level/s: Unit: Topic: Outcome: Contents: Accounting and Finance Advanced Higher Financial Accounting Techniques Not-for-profit Organisations Not applicable Theory and Exemplar Section: Theory note Worked exemplar exercise Exercises 1-10 Solutions Sections: Exemplar solutions to Exercises 1-10 Rationale: Comprehensive coverage of the external assessment requirements Detailed explanations of key issues and calculations provided in the exemplar exercise solution Graded exercises with varying degrees of demand Exercises incorporate calculation of opening Accumulated Fund, closing cash/bank balance, surplus/deficit for the year, profit/loss on fund-raising activities, prepayment & accruals of subscriptions at the start and end of the year Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 1

5 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 2

6 NOT-FOR-PROFIT ORGANISATIONS Commercial organisations such as Sole Traders, Partnerships and Limited Companies, exist to earn a profit for their owners. However, there is a significant sector of the economy whose primary purpose is to provide a service to its members rather than make profits. This consists of the Not-for-Profit Organisations ; a topic in accounting often referred to as Club Accounts. Leaving aside the public sector (central and local government institutions) and the predominantly charitable sector, we shall concentrate on organisations which exist to provide social and leisure facilities. FINANCIAL RECORD KEEPING The financial affairs of most clubs lie in the hands of a Treasurer, a position which is usually part-time and carries no salary, although a fee called an Honorarium can be paid to such an office bearer. Some clubs may not keep a full set of ledger accounts but, instead, all monies received or spent are recorded in a Cash Book. At the end of each financial year, the Treasurer prepares a report for the Club s Annual General Meeting, at which members are entitled to ask questions about the financial state of the organisation. The Treasurer will have a number of prepared financial statements to provide factual answers to any such questions. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 3

7 NOT-FOR-PROFIT ORGANISATIONS - THE ACCOUNTING RECORDS 1 Opening Balance Sheet A list of the Club s assets and liabilities on the first day of the financial year. This is similar to any other Balance Sheet, although it may be called a Statement of Affairs. Another difference is that a club s capital is referred to as its Accumulated Fund. 2 Receipts and Payments Account This is a summary of all (money) cash and bank transactions throughout the year, showing the opening balance(s), all money received and all money spent and the closing cash and/or bank balances. 3 Trading Account (if applicable) Many clubs have bars or other catering facilities which, while providing a service to the members, can also make a profit to be used to improve the overall financial position of the organisation. All relevant items are included in this account and then the profit (hopefully) is transferred (as income) to the next section of the financial records. 4 Income and Expenditure Account This is the equivalent of the Profit and Loss Account, but the terminology is different in that a Net Profit is referred to as a Surplus and a Net Loss is called a Deficit. To the untrained eye, this account looks very much like the Receipts and Payments Account, but a closer inspection will reveal some subtle differences. For instance, the application of the matching principle may result in adjustments to many receipts and payments, additionally capital expenditure is recorded elsewhere. However, as with the Profit and Loss Account, any depreciation of fixed assets will also be recorded. 5 Closing Balance Sheet As might be expected, this is a list of the club s assets and liabilities on the last day of the financial year. Some items may remain unchanged from the start of the year, but most will be different. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 4

8 WORKED EXAMPLE BRAVEHEART HISTORICAL BATTLE SOCIETY On January 1, Year 10, the Braveheart Historical Battle Society had the following assets and liabilities. Bank 1,860 Subscriptions prepaid 150 Bar Stocks 1,350 Subscriptions owing 600 Clubhouse 60,000 Equipment 180 (Cost Price 1,800) Creditors for Bar 900 Insurance prepaid 300 During the year, the following financial transactions took place. RECEIPTS Payments Subscriptions Bar Sales Dance Ticket Sales Event Expenses Officials Expenses Travelling Expenses Purchase of Bar Stock Dance Expenses Rates and Insurance General Expenses Bar Steward s Wages Part payment of purchase of New Equipment* 5,100 24,000 4, ,000 16,050 2,100 1, ,840 2,400 On 31 December, the following information was available. Subscriptions in arrears 1,050 Subscriptions prepaid 240 Bar Stocks 1,800 Insurance prepaid 360 Creditors for Bar 1,650 Bank? * Depreciation for a full year on the new equipment is to be calculated at 10% per annum. The old equipment was traded in for 150 as part payment for the New Equipment. Prepare for Year 10, the 1 Balance Sheet as at 1 January 2 Receipts and Payments Account 3 Bar Trading Account and calculate the profit or loss made on the Dance 4 Income and Expenditure Account 5 Balance Sheet as at 31 December. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 5

9 Balance Sheet (as at 1 January, Year 10) Cost Dep'n NBV Fixed Assets Clubhouse 60, ,000 Equipment 1,800 1, ,800 1,620 60,180 Current Assets Bar Stock 1,350 Subscriptions owing 600 Bank 1,860 Insurance Prepaid 300 4,110 Less Current Liabilities Bar Creditors 900 Subscriptions prepaid 150 1,050 Financed by: Accumulated Fund 3,060 63,240 63,240 Note A Stage 1 Opening Balance Sheet A fairly standard Balance sheet required because the opening Accumulated Fund of the Club is not stated in the question. NB Fixed Assets + Working Capital = Accumulated Fund Note how the aggregate depreciation on the Equipment has been calculated from the figures given in the question. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 6

10 Receipts and Payments Account (for the year ended 31 December, Year 10) Opening Bank Balance 1,860 Receipts Subscriptions 5,100 Bar Sales 24,000 Dance Ticket Sales 4,500 33,600 35,460 Payments Event Expenses 930 Officials' Expenses 450 Travelling Expenses 3,000 Purchase of Bar Stock 16,050 Dance Expenses 2,100 Rates and Insurance 1,125 General Expenses 360 Bar Steward's Wages 3,840 Purchase of New Equipment 2,400 30,255 Closing Bank Balance 5,205 Note B Stage 2 Receipts and Payments Account The opening balance is taken from the opening Balance Sheet, ie money or funds the Club held at the start of the financial year in this example, Year 10. All monies received, no matter whether or not they were overdue from the previous year (Year 9), relate to the current year (Year 10) or were paid early for next year (Year 11), are recorded. All monies paid, again no matter whether or not they relate to the previous year (Year 9), the current year (Year 10) or next year (Year 11) are recorded. The closing balance is calculated by (Opening Balance + Receipts) Payments. The closing balance shows how much money or funds the Club has at the end of the financial year (in this case Year 10). A Receipts and Payments Account will, therefore, record both Capital and Revenue items. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 7

11 Bar Trading Account (for the year ended 31 December, Year 10) Sales 24,000 Less Cost of Sales: Opening Stock 1,350 Add Purchases (16, ,650) 16,800 18,150 1,800 Less Closing Stock 16,350 Gross Profit 7,650 Less Bar Steward's Wages 3,840 Bar Profit 3,810 Note C Stage 3 Bar Trading Account As the Bar is operated as a profit-making facility, a separate accounting statement is required. This will establish, from year to year, if the Bar makes a profit or a loss. All costs relating to the Bar are recorded in the Bar Trading Account. It is necessary to calculate the actual purchases for Year 10 from the figures provided, viz: Creditors at the start of Year 10 (owing from Year 9) 900 Credit Purchases payments made during Year 10 16,050 Creditors at the end of Year 10 (owing for Year 10) 1,650 Part of the 16,050 paid to Creditors must have been to clear the debt ( 900) from Year 9 therefore this amount is deducted. Similarly, although 1,650 is due to Creditors at the end of the year, goods must have been supplied (purchased on credit) during Year 10 therefore this amount is added. NB NB (Payments to Creditors during the year + Creditors at the end of the year) less Creditors at the start of the year = actual credit purchases for the year. Do not confuse actual money paid to Creditors at the start of the year with the actual value of goods purchased. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 8

12 Any relevant expenses are included in this example the Bar Steward s wages are directly linked with the provision of a Bar. A profit in the Bar Trading Account is treated as Income in Stage 5, while a loss would be treated as Expenditure. Dance profit or loss calculation Dance Ticket Sales 4,500 Less Dance Expenses 2,100 Profit on Dances 2,400 Note D Stage 4 Dance (Profit or Loss) It is normal to calculate separately the profit or loss on such events separately and treat the resultant figure as an income or expenditure (as appropriate) in Stage 5. Although there is only one such item in this question, other questions may have more, eg raffles, Christmas celebrations, etc. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 9

13 Income and Expenditure Account (for the year ended 31 December, Year 10) Income Bar Profit 3,810 Profit on Dances 2,400 Subscriptions (5, , ) 5,460 11,670 Expenditure Event Expenses 930 Officials' Expenses 450 Travelling Expenses 3,000 Rates and Insurance (1, ) 1,065 General Expenses 360 Loss on Sale of Equipment ( ) 30 Depreciation (New Equipment) 255 6,090 Surplus 5,580 Note E Stage 5 Income and Expenditure Account The purpose of this accounting statement is to calculate whether or not the Club is paying its way during the financial year. All incomes relating to the year and all expenditures relating to the year are compared to establish if the Club has a surplus or a deficit for the year. Only revenue income and revenue expenditure are recorded. Any monies received during the year which relate to the previous or future years are deducted. Similarly, any monies received in previous years for the current year are added. Subscriptions have to be calculated to establish the actual figure which the Club expects for the year. At 1 January, Year 10, Subscriptions owing must relate to Year 9 deduct. At 1 January year 10, Subscriptions prepaid must relate to Year 10 add. At 31 December, Year 10, Subscriptions owing must relate Year 10 add At 31 December, Year 10, Subscriptions prepaid must relate to Year 11 deduct. The resultant figure of 5,460 is the expected income from Subscriptions for Year 10. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 10

14 Similarly, where expenses are owing or prepaid at the start and end of the financial year, these have to be adjusted to establish the exact amount due for the year. If a fixed asset has been sold, it is necessary to establish if a profit or loss on sale has been made. This is based on the Club s valuation of its worth at the time of the sale. A profit on sale is treated as an income, while a loss on sale is treated as an expenditure. Equipment value 180 Trade-in price 150 Loss on sale 30 The new equipment was purchased partly by receiving a trade-in price on the old equipment ( 150) and a money (cheque) payment of ( 2,400) the purchase price of the new equipment 2,550. Depreciation at 10% per annum, therefore = 255. Bar profits and Dance profits are shown as incomes. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 11

15 Balance Sheet (as at 31 December, Year 10) Cost Dep'n NBV Fixed Assets Premises 60, ,000 Sports Equipment (2, trade-in) 2, ,295 62, ,295 Current Assets Stock 1,800 Subs owing 1,050 Bank 5,205 Insurance prepaid 360 8,415 Less Current Liabilities Bar Creditors 1,650 Subscriptions received in advance 240 1,890 Financed by: Accumulated Fund At start 63,240 Add Surplus 5,580 6,525 68,820 68,820 68,820 Note F Stage 6 Closing Balance Sheet Shows the assets and liabilities of the Club at the end of the financial year. The surplus from the Income and Expenditure Account is added to the opening Accumulated Fund. The Bank figure is taken from the closing balance on the Receipts and Payments Account. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 12

16 QUESTIONS Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 13

17 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 14

18 QUESTION 1 MENTEITH SPORTS CLUB On January 1, Year 1, the Menteith Sports Club had the following assets: Bank 2,150 Equipment 3,750. During Year 1 the following financial transactions took place: Subscriptions Competitions Transport Other Payments Depreciation The Club has 84 members, all of whom have paid their annual subscription of 35. In addition, 20 members have paid for Year 2. Gate money from spectators Prizes purchased Competition Running Expenses Hire of Coaches amount paid Amount still outstanding on 31 December Sports Equipment purchased during the year Secretarial Expenses Rent of Clubhouse (the annual rent is 1,500) Sports Association Fees Miscellaneous Expenses All equipment is depreciated by 10% per year using the straight-line method 1, , , , Prepare the: 1. Balance Sheet as at 1 January Year 1 2. Receipts and Payments Account for Year 1 3. Income and Expenditure Account for Year 1 4. Balance Sheet as at 31 December. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 15

19 QUESTION 2 - STRONACHLACHAR SOCIAL CLUB On April 1, Year 1, the Stronachlachar Social Club had the following assets: Bank 600 Furniture & Fittings 1,900 During the year, the following financial transactions took place: Subscriptions Other Receipts Payments The club has 230 members, of these 212 have paid the annual subscriptions of 15 Card Nights Dances Social Evenings Pensioners' Outing Lease of Clubhouse Rates paid (annual charge is 450) Insurance paid (annual charge is 250) Secretary's Honorarium , Depreciation Depreciation on Furniture & Fittings 10% (straight-line) The 5-year lease was paid on April 1, Year 1 Prepare the: 1. Balance Sheet as at 1 April Year 1 2. Receipts and Payments Account for Year 1 3. Income and Expenditure Account for Year 1 4. Balance Sheet as at 31 March, Year 2. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 16

20 QUESTION 3 INVERSNAID TENNIS CLUB On January 1, Year 1, the Inversnaid Tennis Club had the following assets and liabilities. Bank (overdrawn) 256 Furniture & Fittings 3,520 Equipment 6,560 Bank Loan 12,000 Clubhouse & Courts 66,400 During the year, the following financial transactions took place. Receipts Payments Depreciation Subscriptions amounted to 2,480 of which 192 is for the following year Competition Entrance Fees were 672 Purchase of nets and rackets Match Expenses* General Expenses Groundsman s Wages Loan interest Paid (interest is 4% per annum) Furniture & Fittings 5% (straight-line) Sports Equipment * 64 is still due to be paid. Prepare the: 1. Balance Sheet as at 1 January Year 1 2. Receipts and Payments Accounts for Year 1 3. Income and Expenditure Account for Year 1 4. Balance Sheet as at 31 December Year 1. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 17

21 QUESTION 4 TROSSACHS TRUNDLERS FOOTBALL CLUB On January 1, Year 1, the Trossachs Trundlers Football Club had the following assets and liabilities. Clubhouse and Changing Rooms 12,000 Equipment 840 Subscriptions due 96 Amount due for last year s dance catering 480 Bank 912 During the year, the following financial transactions took place: Receipts Payments Subscriptions - amount received Locker Rent Dance Receipts Sale of old Footballs Sale of old Mower Dance Expenses Hire of Band Purchase of new Mower Repairs to Goalposts & Nets Purchase of Footballs Match Expenses Repairs to Clubhouse 1, , , Depreciation Equipment in use at end of year 15% Notes 1. Match Expenses due On 31 December, the Club owed 132 for footballs purchased from Rob Roy Sports 3. The book value of the old mower was Footballs are regarded as revenue expenditure of the amount received for Subscriptions is for next year Prepare the: 1. Balance Sheet as at 1 January Year 1 2. Receipts and Payments Account for Year 1 3. Income and Expenditure Account for Year 1 4. Balance Sheet as at 31 December, Year 1. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 18

22 QUESTION 5 - VENNACHAR WALKING CLUB On January 1, Year 1, the Vennachar Walking Club had the following assets and liabilities. Bank Deposit Account 2,400 Cash 240 Minibus 2,100 Minibus repair bill owing 180 Outdoor Equipment 3,900 Subscriptions received in advance 120 During the year, the following financial transactions took place. Receipts Payments Subscriptions - Amount received Donations Loan from Sports Authority Proceeds from Fundraising Lecture Night Ticket Sales Rent of Meeting Room Minibus Fuel Minibus Repairs & Maintenance Miscellaneous Expenses Repairs to Outdoor Equipment New Outdoor Equipment (purchased on 1 July, Year 1) Lecture Night Expenses 2, ,800 2,417 1, , , NOTES (all relating to 31 December, Year 1) 1. Subscriptions received in advance Rent prepaid Minibus service bill due Honorarium to treasurer due but unpaid Interest due on Deposit Account Depreciation at the rate of 20% per annum to be written off Outdoor Equipment 7. The local garage valued the minibus at 1,800 when it underwent its recent service Prepare the: 1. Balance Sheet as at 1 January Year 1 2. Receipts and Payments Account for Year 1 3. Income and Expenditure Account for Year 1 4. Balance Sheet as at 31 December, Year 1. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 19

23 QUESTION 6 BRIG O TURK BOWLING CLUB On January 1, Year 1, the Brig O Turk Bowling Club had the following assets. Bank 4,500 Greenkeeping Equipment 3,300 (original cost 4,500) Furniture and Fittings 8,100 (original cost 9,000) Subscriptions owing 381 Bar Stock 6,981 During the year, the following financial transactions took place: Receipts Payments Subscriptions - Amount received Visitors Ticket Sales Bar Receipts Locker Rents Annual Outing Rent and Rates Greenkeeping Costs Travelling Costs Heat and Light Bar Purchases Bar Wages Insurance Outing Expenses General Administrative Expenses Repairs 12,240 6,300 38,251 1, ,000 5, ,680 15,300 9, ,230 3,000 1,470 On 31 December, the club had the following assets and liabilities. Assets Liabilities Greenkeeping Equipment 2,700 Subscriptions received in advance 240 Furniture and Fittings 6,900 General Expenses owing 123 Bar Stock 4,200 Rent and Rates prepaid 2,250 Bank? Prepare the: 1. Balance Sheet as at 1 January Year 1 2. Receipts and Payments Account for Year 1 3. Bar Trading Account for Year 1 4. Income and Expenditure Account for Year 1 5. Balance Sheet as at 31 December, Year 1. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 20

24 QUESTION 7 BALMAHA BEACH VOLLEYBALL CLUB On January 1, Year 1, the Balmaha Beach Volleyball Club had the following assets and liabilities. Bank 9,000 Subscriptions prepaid 280 Bar Stocks 5,800 Subscriptions owing 240 Fixtures and Fittings 9,600 Equipment 11,600 (Cost Price 16,000) (Cost Price 14,000) Groundsman's Wages due 360 Insurance prepaid 160 Premises 80,000 During the year, the following financial transactions took place: RECEIPTS Subscriptions Bar Sales Dance Ticket Sales Guest Charges 19,600 58,400 13,268 2,320 Payments Insurance and Rates Groundsman s Wages Electricity Caretaker s Wages Bar Steward s Wages Purchases for Bar Purchase of Sports Equipment Dance Catering Dance Prizes Dance Bands Secretary s Honorarium On 31 December, the following information was available. 6,832 10,000 5,600 9,636 12,800 33,160 1,600 3, , Subscriptions in arrears 320 Subscriptions prepaid 120 Bar Stocks 6,000 Insurance due 100 Depreciate Fixed Assets Groundsman s Wages due 160 (except Premises) by 10% of cost Bank? Prepare for Year 1, the: 1. Balance Sheet as at 1 January 2. Receipts and Payments Account 3. Bar Trading Account and Profit or Loss made on Dances 4. Income and Expenditure Account 5. Balance Sheet as at 31 December. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 21

25 QUESTION 8 ROB ROY ATHLETICS CLUB On April 1, Year 1, the Rob Roy Athletics Club had the following assets and liabilities. Bank 8,000 Owed to Competitors 3,600 Bar Stocks 5,600 Subscriptions owing 4,000 Fixtures and Fittings 12,800 Sports Equipment 10,240 (Cost Price 20,000) (Cost Price 16,000) Transport paid in advance 1,400 Creditors for Bar Supplies 4,800 Competition ticket sales in advance 800 During the year, the following financial transactions took place: Receipts Payments Subscriptions Refreshment Bar Sales Loan from Sports Authority Competition Ticket Sales Sponsorship from Maximus Sports Bar Purchases Bar Wages Purchase of Clubhouse Loan Interest paid Administrative Expenses Fees to Competitors Purchase of Sports Equipment Transport Costs Maintenance of Facilities 42,000 80,000 40,000 30,000 20,000 38,000 16,000 60,000 2,000 20,000 38,000 24,000 10,000 6,200 On 31 March, Year 2, the following additional information was available. Bar Stock 7,000 Owed to Competitors 2,800 Creditors for Bar Supplies 5,400 Ticket Sales in advance 1,200 Depreciation: Loan Interest due 1,000 Premises 2% of cost Transport paid in advance 800 Fixtures & Fittings 20% reducing balance Subscriptions in advance 16,000 Sports Equipment 10,240 Subscriptions owing Bank Prepare the: 1. Balance Sheet as at 1 April, Year 1 2. Receipts and Payments Account for the year 3. Bar Trading Account 4. Income and Expenditure Account for the year 5. Balance Sheet as at 31 March, Year 2. 3,200? Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 22

26 QUESTION 9 BUCHLYVIE SPORTS CLUB On January 1, Year 1, the Buchlyvie Sports Club had the following assets and liabilities. Bank Premises Mowing Machinery (Cost Price 20,000) Bar Stock 6, ,000 11,000 7,700 Subscriptions in arrears: Bowling Creditors for Bar Furniture & Fittings (Cost Price 24,000) 2,400 5,950 16,600 During the year, the following financial transactions took place: Receipts Payments Subscriptions: Bowling Curling Visitors Entrance Fees: Bowling Curling Bar Takings Loan from Sports Authority Sponsorship Rent of Lockers (Bowling) Heating and Lighting Repairs: Bowling Curling Extension to Curling Rink Wages: Bar Greenkeepers Caretaker & Cleaners Bar Purchases Insurance and Rates Purchase of Furniture Purchase of Mower for Bowling Green 84,000 20,000 26,950 1, ,200 50,000 44, ,600 29,950 4, ,000 11,000 47,600 23,000 95,700 14,740 7,400 10,000 On 31 December, the following information was available. Creditors for Bar 6,250 Subscriptions in Arrears: Bowling 3,600 Bar Stocks 8,100 Curling 2,000 Depreciate Mowing Machinery by 10% of cost Depreciate Furniture & Fittings, held on 1 January, by 2.5% of cost The loan was obtained on 1 July with an annual rate of interest of 5%. Heating & Lighting and Insurance & Rates should be shared in the following ratios: Bar 40%, Bowling 40% and Curling 20%. Prepare for Year 1, the: 1 Balance Sheet as at 1 January 2 Receipts and Payments Account 3 Bar Trading Account 4 The surplus/deficit for the Bowling Section and the Curling Section 5 Income and Expenditure Account 6 Balance Sheet as at 31 December. Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 23

27 QUESTION 10 - ABERFOYLE ARCHERY CLUB On January 1, Year 1, the Aberfoyle Archery Club had the following assets and liabilities. Bank Current Account Bank Deposit Account 2,070 3,000 Subscriptions in arrears Subscriptions prepaid Creditors for Bar 1,140 Rent and Rates due 90 Archery Equipment 180 Furniture & Fittings 2,340 (Cost Price 720) (Cost Price 3,000) Bar Stocks 1,320 Lighting and Heating due 60 During the year, the following financial transactions took place. Receipts Entrance Fees Subscriptions Bar Takings Catering Receipts 600 3,840 18, Payments Bar Purchases Bar Wages Catering Purchases Rent and Rates Lighting and Heating Part payment of new Archery Equipment (All existing Archery Equipment was traded-in for 300) Purchase of new Furniture General Expenses On 31 December, the following information was available. 14,230 1, , , Creditors for Bar 1,500 Subscriptions in Arrears 300 Bar Stocks 1,140 Rent and Rates due 180 Depreciate all Furniture by 10% on cost Lighting and Heating due 90 Depreciate the new Archery Equipment by Closing Stock of Catering Supplies 20% on cost 22 General Expenses prepaid Unpaid bill for Catering Supplies Interest on the Bank Deposit Account due, but not yet received - 5% per annum. The Bar Steward is entitled to a bonus equal to 40% of the Gross Profit on Catering. (This amount has yet to be paid). Prepare for Year 1, the: 1. Balance Sheet as at 1 January 2. Receipts and Payments Account 3. Bar Trading Account 4. Catering Trading Account 5. Income and Expenditure Account 6. Balance Sheet as at 31 December Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 24

28 EXEMPLAR SOLUTIONS Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 25

29 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 26

30 QUESTION 1 - MENTEITH SPORTS CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Sports Equipment 3, ,750 Current Assets Cash/Bank 2,150 5,900 Financed by: Accumulated Fund At start 5,900 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Bank Balance 2,150 Receipts Subscriptions (2, ) 3,640 Competition Gate Money 1,740 5,380 7,530 Payments Competition Prizes 480 Competition Running Expenses 830 Hire of Coaches 1,120 Purchase of Sports Equipment 1,250 Secretarial Expenses 90 Rent of Clubhouse 2,000 Sports Association Fees 240 Miscellaneous Expenses 130 6,140 Closing Bank Balance 1,390 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 27

31 (3) Income and Expenditure Account (for the year ended 31 December, Year 1) Income Competition Receipts 1,740 Subscriptions 2,940 4,680 Expenditure Competition Gate Money 480 Competition Running Expenses 830 Hire of Coaches (1, ) 1,380 Secretarial Expenses 90 Rent of Clubhouse (2, ) 1,500 Sports Association Fees 240 General Expenses 130 Depreciation of Sports Equipment (10% of 5,000) 500 5,150 Deficit (4) Balance Sheet (as at 31 December, Year 1) Fixed Assets Cost Dep'n NBV Sports Equipment (3, ,250) 5, ,500 Current Assets Rent Prepaid 500 Cash/Bank 1,390 1,890 Less Current Liabilities Sub Prepaid 700 Coach Hire due Financed by: Accumulated Fund At start 5,900 Less Deficit ,430 5,430 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 28

32 QUESTION 2 - STRONACHLACHAR SOCIAL CLUB (1) Balance Sheet (as at 1 April, Year 1) Fixed Assets Cost Dep'n NBV Furniture & Fittings 1, ,900 Current Assets Bank 600 2,500 Financed by: Accumulated Fund At start 2,500 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Bank Balance 600 Receipts Subscriptions (212 x 15) 3,180 Card Nights 215 Dances 740 Social Evenings 370 4,505 5,105 Payments Pensioners' Outing 580 Lease of Clubhouse 3,000 Rates 400 Insurance 225 Secretary's Honorarium 60 4,265 Closing Bank Balance 840 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 29

33 (3) Income and Expenditure Account (for the year ended 31 March, Year 2) Income Subscriptions (3, ) 3,450 Card Nights 215 Dances 740 Social Evenings 370 4,775 Expenditure Pensioners' Outing 580 Depreciation on Lease of Clubhouse ( 3,000 / years) Rates ( ) 450 Insurance ( ) 250 Secretary's Honorarium 60 Depreciation of Sports Equipment (10% of 1,900) 190 2,130 Surplus 2,645 (4) Balance Sheet (as at 1 April Year 2) Cost Dep'n NBV Fixed Assets Lease of Premises 3, ,400 Furniture & Fittings 1, ,710 4, ,110 Current Assets Subscriptions owing 270 Bank 840 1,110 Less Current Liabilities Rates owing 50 Insurance owing ,035 5,145 Financed by: Accumulated Fund At start 2,500 Add Surplus 2,645 5,145 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 30

34 QUESTION 3 - INVERSNAID TENNIS CLUB (1) Balance Sheet (as at 1 January, Year 1) Fixed Assets Cost Dep'n NBV Clubhouse & Courts 66, ,400 Furniture & Fittings 3, ,520 Sports Equipment 6, ,560 76, ,480 Current Assets 0 Less Current Liabilities Bank Overdraft ,224 Financed by: Accumulated Fund At start 64,224 Long-term Liabilities Bank Loan 12,000 76,224 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Bank Balance -256 Receipts Subscriptions 2,480 Competition Entrance Fees 672 3,152 2,896 Payments Purchase of Nets and Rackets 640 Match Expenses 256 General Expenses 232 Groundman's Wages 416 Loan Interest Paid 320 1,864 Closing Bank Balance 1,032 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 31

35 (3) Income and Expenditure Account (for the year ended 31 December, Year1) Income Subscriptions (2, ) 2,288 Competition Entrance Fees 672 2,960 Expenditure Loan Interest ( ) 480 Match Expenses ( ) 320 General Expenses 232 Groundsman's Wages 416 Depreciation - Furniture and Fittings 176 Sports Equipment 200 1,824 Surplus 1,136 (4) Balance Sheet (as at 31 December,Year 1) Cost Dep'n NBV Fixed Assets Clubhouse & Courts 66, ,400 Furniture & Fittings 3, ,344 Sports Equipment (6, ) 7, ,000 77, ,744 Current Assets Bank 1,032 Less Current Liabilities Subs prepaid 192 Match Expenses owing 64 Loan Interest owing ,360 Financed by: Accumulated Fund At start 64,224 Add Surplus 1,136 65,360 Long-term Liabilities Bank Loan 12,000 77,360 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 32

36 QUESTION 4 - TROSSACHS TRUNDLERS FOOTBALL CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Clubhouse & Changing Rooms 12, ,000 Equipment , ,840 Current Assets Subscriptions due 96 Bank 912 1,008 Less Current Liabilities Owed to Caterer ,368 Financed by: Accumulated Fund At start 13,368 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Bank Balance 912 Receipts Subscriptions 1,968 Locker Rents 120 Dance Receipts 1,668 Sale of old footballs 180 Sale of old mower 96 4,032 4,944 Payments Dance Expenses 1,620 Hire of Band 300 Purchase of new mower 636 Repairs to Equipment 228 Purchase of new balls 372 Match Expenses 204 Repairs to Clubhouse 780 4,140 Closing Bank Balance 804 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 33

37 (3) Income and Expenditure Account (for the year ended 31 January, Year 1) Income Subscriptions (1, ) 1,920 Locker Rents 120 Dance Receipts 1,668 Sale of Footballs 180 Profit on Sale of Mower (96-36) 60 3,948 Expenditure Dance Expenses (1, ) 1,140 Hire of Band 300 Repairs to Equipment 228 Purchase of Footballs ( ) 504 Match Expenses ( ) 268 Repairs to Clubhouse 780 Depreciation of Equipment ([ ] - 36) x 15% 216 3,436 Surplus 512 (4) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Clubhouse & Courts 12, ,000 Equipment ( ) 1, ,224 13, ,224 Current Assets Bank 804 Subscriptions due LessCurrent Liabilities Match Expenses due 64 Creditor (Rob Roy Sports) ,880 Financed by: Accumulated Fund At start 13,368 Add Surplus ,880 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 34

38 QUESTION 5 - VENNACHAR WALKING CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Minibus 2, ,100 Outdoor Equipment 3, ,900 6, ,000 Current Assets Bank Deposit Account 2,400 Cash 240 2,640 Less Current Liabilities Subscriptions received in advance 120 Amount owing for minibus repair ,340 8,340 Financed by: Accumulated Fund At start 8,340 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Cash Balance 240 Receipts Subscriptions 2,040 Donations 120 Loan from Sports Authority 1,800 Proceeds from Fundraising 2,417 Lecture Night Ticket Sales 1,483 7,860 8,100 Payments Rent of Meeting Room 900 Minibus Fuel 1,425 Minibus Repairs & Maintenance 375 Miscellaneous Expenses 660 Repairs to Outdoor Equipment 180 Purchase of New Outdoor Equipment 1,200 Lecture Night Expenses 600 5,340 Closing Cash Balance 2,760 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 35

39 (3) Income and Expenditure Account (for the year ended 31 January, Year 1) Income Subscriptions (2, ) 2,100 Donations 120 Proceeds from Fundraising 2,417 Lecture Night Ticket Sales 1,483 Interest due 180 6,300 Expenditure Rent of Meeting Room ( ) 720 Minibus Fuel 1,425 Minibus Repairs and Maintenance ( ) 435 Miscellaneous Expenses 660 Repairs to Outdoor Equipment 180 Depreciation of Minibus 300 Depreciation of Outdoor Equipment ( *) *(6 mths) 900 Lecture Night Expenses 600 Honorarium due to Treasurer 300 5,520 Surplus 780 (4) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Minibus 2, ,800 Outdoor Equipment (3, ,200) 5, ,200 7,200 1,200 6,000 Current Assets Bank Deposit Account (add Interest due) 2,580 Cash 2,760 Rent Prepaid 180 5,520 Less Current Liabilities Subscriptions received in advance 60 Minibus Service Bill due 240 Honorarium due to Treasurer ,920 10,920 Financed by: Accumulated Fund At start 8,340 Add Surplus 780 9,120 Long-term Liabilities Loan from Sports Authority 1,800 10,920 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 36

40 QUESTION 6 - BRIG O' TURK BOWLING CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Furniture and Fittings 9, ,100 Greenkeeping Equipment 4,500 1,200 3,300 13,500 2,100 11,400 Current Assets Bar Stock 6,981 Bank 4,500 Subscriptions Owing ,862 23,262 Financed by: Accumulated Fund At start 23,262 Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Cash Balance 4,500 Receipts Subscriptions 12,240 Visitors' Ticket Sales 6,300 Bar Receipts 38,251 Locker Rents 1,200 Annual Outing ,921 63,421 Payments Rent and Rates 9,000 Greenkeeping Costs 5,100 Travelling Costs 450 Heat and Light 1,680 Bar Purchases 15,300 Bar Wages 9,300 Insurance 291 Outing Expenses 1,230 General Administrative Expenses 3,000 Repairs 1,470 46,821 Closing Cash Balance 16,600 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 37

41 (3) Bar Trading Account (for the year ended 31 December, Year 1) Sales (Bar Receipts) 38,251 Less Cost of Sales: Opening Stock 6,981 Add Purchases 15,300 22,281 Less Closing Stock 4,200 18,081 Less Bar Wages 9,300 27,381 Profit on Bar 10,870 (4) Income and Expenditure Account (for the year ended 31 January, Year 1) Income Subscriptions (12, ) Visitors' Ticket Sales 6300 Bar Profit 10,870 Locker Rents 1,200 Annual Outing Receipts ,919 Expenditure Rent and Rates (9,000-2,250) 6,750 Greenkeeping Costs 5,100 Travelling Costs 450 Heat and Light 1,680 Insurance 291 Annual Outing Expenses 1,230 General Administrative Expenses (3, ) 3,123 Repairs 1,470 Depreciation - Greenkeeping Equipment 600 Furniture and Fittings 1,200 21,894 Surplus 9,025 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 38

42 (5) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Furniture and Fittings 9,000 2,100 6,900 Greenkeeping Equipment 4,500 1,800 2,700 13,500 3,900 9,600 Current Assets Bar Stock 4,200 Bank 16,600 Rent and Rates prepaid 2,250 23,050 Less Current Liabilities Subscriptions received in advance 240 Expenses owing ,687 32,287 Financed by: Accumulated Fund At start 23,262 Less Deficit 9,025 32,287 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 39

43 QUESTION 7 - BALMAHA BEACH VOLLEYBALL CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Premises 80, ,000 Fixtures & Fittings 16,000 6,400 9,600 Equipment 14,000 2,400 11, ,000 8, ,200 Current Assets Bar Stock 5,800 Subs owing 240 Cash/Bank 9,000 Insurance Prepaid ,200 Less Current Liabilities Groundsman's Wages due 360 Subscriptions paid in advance , ,760 Financed by: Accumulated Fund 115,760 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Cash Balance 9,000 Receipts Subscriptions 19,600 Bar Sales 58,400 Dance Ticket Sales 13,268 Guest Charges 2,320 93, ,588 Payments Insurance and Rates 6,832 Groundsman's Wages 10,000 Electricity 5,600 Caretaker's Wages 9,636 Bar Steward's Wages 12,800 Purchases for Bar 33,160 Purchase of Sports Equipment 1,600 Dance Catering 3,640 Dance Prizes 560 Dance Bands 3,040 Secretary's Honorarium ,668 Closing Cash Balance 14,920 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 40

44 (3) Bar Trading Account (for the year ended 31 December, Year 1) Sales 58,400 Less Cost of Sales: Opening Stock 5,800 Add Purchases 33,160 38,960 Less Closing Stock 6,000 32,960 Gross Profit 25,440 Less Bar Steward's Wages 12,800 Bar Profit 12,640 Profit Statement on Dances Dance Ticket Sales 13,268 Less Dance Expenses: Catering 3,640 Prizes 560 Bands 3,040 7,240 Profit on Dances 6,028 (4) Income and Expenditure Account (for the year ended 31 December, Year 1) Income Bar Profit 12,640 Profit on Dances 6,028 Subscriptions (19, ) 19,840 Guest Charges 2,320 40,828 Expenditure Insurance and Rates (6, ) 7,092 Groundsman's Wages (10, ) 9,800 Electricity 5,600 Caretaker's Wages 9,636 Secretary's Honorarium 800 Depreciation - Fixtures and Fittings 1,600 Sports Equipment (10% of 15,600) 1,560 36,088 Surplus 4,740 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 41

45 (5) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Premises 80,000-80,000 Fixtures & Fittings 16,000 8,000 8,000 Sports Equipment 15,600 3,960 11, ,600 11,960 99,640 Current Assets Stock 6,000 Subs owing 320 Bank 14,920 21,240 Less Current Liabilities Insurance due 100 Groundsman's Wages due 160 Subscriptions prepaid , ,500 Financed by: Accumulated Fund At start 115,760 Add Surplus 4, ,500 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 42

46 QUESTION 8 - ROB ROY ATHLETICS CLUB (1) Balance Sheet (as at 1 April, Year 1) Cost Dep'n NBV Fixed Assets Fixtures and Fittings 20,000 7,200 12,800 Sports Equipment 16,000 5,760 10,240 36,000 12,960 23,040 Current Assets Stock 5,600 Subs owing 4,000 Bank 8,000 Transport paid in advance 1,400 19,000 Less Current Liabilities Creditors (Bar Purchases) 4,800 Owed to Competitors 3,600 Competition tickets sold in advance 800 9,200 9,800 32,840 Financed by: Accumulated Fund 32,840 (2) Receipts and Payments Account (for the year ended 31 March, Year 1) Opening Bank Balance 8,000 Receipts Subscriptions 42,000 Bar Sales 80,000 Loan Received from Sports Authority 40,000 Competition Ticket Sales 30,000 Sponsorship from Maximus Sports 20, , ,000 Payments Bar Purchases 38,000 Bar Wages 16,000 Purchase of Clubhouse 60,000 Loan Interest paid 2,000 Administrative Expenses 20,000 Fees to Competitors 38,000 Purchase of Sports Equipment 24,000 Transport Costs 10,000 Maintenance of Facilities 6, ,200 Closing Bank Balance 5,800 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 43

47 (3) Refreshment Bar Trading Account (for the year ended 31 March, Year 2) Sales 80,000 Less Cost of Sales: Opening Stock 5,600 Add Purchases (38,000-4, ,400) 38,600 44,200 Less Closing Stock 7,000 37,200 Gross Profit 42,800 Less Wages 16,000 Bar Profit 26,800 (4) Income and Expenditure Account (for the year ended 31 March, Year 2) Income Bar Profit 26,800 Sponsorship from Maximus Sports 20,000 Subscriptions (42,000-4,000-16, ,200) 25,200 Sale of Competition Tickets (30, ,200) 29, ,600 Expenditure 37,200 Loan Interest (2, ,000) 3,000 20,000 Transport Costs (10, , ) 10,600 Maintenance of Facilities 6,200 Depreciation - Premises 1,200 Depreciation - Fixtures and Fittings 2,560 Depreciation - Sports Equipment 10,240 91,000 Surplus 10,600 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 44

48 (5) Balance Sheet (as at 31 March Year 2) Cost Dep'n NBV Fixed assets Premises 60,000 1,200 58,800 Fixtures and Fittings 20,000 9,760 10,240 Sports Equipment 40,000 16,000 24, ,000 26,960 93,040 Current Assets Stock 7,000 Subs owing 3,200 Bank 5,800 Transport paid in advance ,800 Less Current Liabilities Creditors (Bar Purchases) 5,400 Owed to Competitors 2,800 Concert Tickets sold in advance 1,200 Loan Interest due 1,000 Subscriptions prepaid 16,000 26,400-9,600 83,440 Financed by: Accumulated fund At start 32,840 Add Surplus 10,600 43,440 Long-term Liability Loan from Sports Authority 40,000 83,440 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 45

49 QUESTION 9 - BUCHLYVIE SPORTS CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Premises 340, ,000 Fixtures & Fittings 24,000 7,400 16,600 Mowing Machinery 20,000 9,000 11, ,000 16, ,600 Current Assets Bar Stock 7,700 Subs owing (Bowling) 2,400 Bank 6,000 16,100 Less Current Liabilities Creditors for Bar 5,950 10, ,750 Financed by: Accumulated Fund 377,750 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 46

50 (2) Receipts and Payments Account (for the year ended December, Year 1) Opening Cash Balance 6,000 Receipts Subscriptions: Bowling 84,000 Curling 20,000 Visitors Entrance Fees: Bowling 26,950 Curling 1,950 Bar Takings 139,200 Loan from Sports Authority 50,000 Sponsorship 44,000 Rent of Lockers (Bowling) , ,000 Payments Heating and Lighting 18,600 Repairs: Bowling 29,950 Curling 4,700 Extension to Curling Rink 100,000 Wages: Bar 11,000 Greenkeepers 47,600 Caretaker & Cleaners 23,000 Bar Purchases 95,700 Insurance and Rates 14,740 Purchase of Furniture 7,400 Purchase of Mower for Bowling Green 10, ,690 Closing Bank Balance 10,310 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 47

51 (3) Bar Trading Account (for the year ended 31 December, Year 1) Sales 139,200 Less Cost of Sales: Opening Stock 7,700 Add Purchases 95,700-5, ,250) 96, ,700 Less Closing Stock 8,100 95,600 Gross Profit 43,600 Less Bar Wages 11,000 Heating & Lighting (40%) 7,440 Insurance & Rates (40%) 5,896 24,336 Bar Profit 19,264 (4) Analysis of Bowling Section Subscriptions Received (84,000-2, ,200 3,600) Entrance Fees Received 26,950 Rent of Lockers ,050 Less Expenses: Heating & Lighting (40%) 7,440 Insurance & Rates (40%) 5,896 Repairs 29,950 Greenkeepers' Wages 47,600 Depreciation of Mowing Machinery (10%[20, ,000]) 3,000 93,886 Surplus from Bowling Section 19,164 Analysis of Curling Section Subscriptions Received (20, ,000) 22,000 Entrance Fees Received 1,950 23,950 Less Expenses Heating & Lighting (20%) 3,720 Insurance & Rates (20%) 2,948 Repairs 4,700 11,368 Surplus from Curling Section 12,582 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 48

52 (5) Income and Expenditure Account Income Bar Profit 19,264 Surplus from Bowling Section 19,164 Surplus from Curling Section 12,582 Sponsorship 44,000 95,010 Expenditure Wages of Caretaker and Cleaners 23,000 Depreciation of Furniture 3,000 Loan Interest due (5% of 50,000 for 6 months) 1,250 27,250 Surplus 67,760 (6) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Premises (340, ,000) 440, ,000 Furniture & Fittings (24, ,400) 31,400 10,400 21,000 Mowing Machinery (20, ,000) 30,000 12,000 18, ,400 22, ,000 Current Assets Stock 8,100 Subs owing (3, ,000) 5,600 Bank 10,310 24,010 Less Current Liabilities Bar Creditors 6,250 Loan Interest due 1,250 7,500 Financed by: Accumulated Fund At start 377,750 Add Surplus 67,760 16, , ,510 Long-term Liability Loan from Sports Authority 50, ,510 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 49

53 QUESTION 10 - ABERFOYLE ARCHERY CLUB (1) Balance Sheet (as at 1 January, Year 1) Cost Dep'n NBV Fixed Assets Furniture 3, ,340 Equipment ,720 1,200 2,520 Current Assets Bar Stock 1,320 Subs owing 240 Bank Deposit Account 3,000 Bank Current Account 2,070 6,630 Less Current Liabilities Bar Creditors 1,140 Subs prepaid 165 Rent and Rates due 90 Lighting and Heating due 60 1,455 5,175 7,695 Financed by: Accumulated Fund 7,695 (2) Receipts and Payments Account (for the year ended 31 December, Year 1) Opening Cash Balance 2,070 Receipts Subscriptions 3,840 Entrance Fees 600 Bar Sales 18,630 Catering Receipts ,820 25,890 Payments Bar Purchases 14,230 Bar Wages 1,890 Catering Purchases 420 Rent and Rates 1,110 Lighting and Heating 870 Purchase of new Archery Equipment 780 Purchase of New Furniture 2,700 General Expenses ,720 Closing Cash Balance 3,170 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 50

54 (3) Bar Trading Account (for the year ended 31 December, Year 1) Sales 18,630 Less Cost of Sales: Opening Stock 1,320 Add Purchases (14,230-1, ,500) 14,590 15,910 Less Closing Stock 1,140 14,770 Gross Profit 3,860 Less Bar Steward's Wages 1,890 Bar Profit 1,970 (4) Catering Trading Account Catering Sales 750 Less Catering Purchases ( ) 460 Less Closing Stock Gross Profit 312 LESS Bar Steward's Bonus (due) 125 Catering Profit 187 (5) Income and Expenditure Account (for the year ended 31 December, Year 1) Income Subscriptions (3, ) 4,065 Bar Profit 1,970 Catering Profit 187 Entrance Fees 600 Deposit Account Interest due 150 Profit on sale of old Archery Equipment ( ) 120 7,092 Expenditure Rent and Rates (1, ) 1,200 Lighting and Heating ( ) 900 General Expenses (720-53) 667 Depreciation of Furniture (10% of 5,700) 570 Depreciation of Equipment (20% of 1,080) 216 3,553 Surplus 3,539 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 51

55 (6) Balance Sheet (as at 31 December, Year 1) Cost Dep'n NBV Fixed Assets Furniture (3, ,700) 5,700 1,230 4,470 Fencing Equipment ( ) 1, ,780 1,446 5,334 Current Assets Bar Stock 1,140 Catering Stock 22 Subs owing 300 Bank Deposit Account (3, ) 3,150 Bank Current Account 3,170 General Expenses prepaid 53 7,835 Less Current Liabilities Bar Creditors 1,500 Unpaid bill for Catering Purchases 40 Rent and Rates due 180 Lighting and Heating 90 Bar Steward's Bonus due 125 1,935 5,900 11,234 Financed by: Accumulated Fund At start 7,695 Add Surplus 3,539 11,234 11,234 Accounting and Finance: Not-for-Profit Organisations (Club Accounts) (AH) 52