Club Accounts Included in the assets and liabilities of the Pearses' football club on the 01/01/2008 were the following: Clubhouse £430,000; Land £280,000; Equipment £140,000; Bar Stock £6,200; Investments £50,000; Expenses due £1,140; Bar Creditors £1,400; Members' subscription due £300 - Leaving Cert Accounting - Question 6 - 2009

The Bar Trading Account summarizes the income and expenses associated with bar activities for the fiscal year:

Bar Trading Account
For the Year Ended 31/12/2008

• Income:
  • Bar Sales: £56,200
• Less COGS:
  • Opening Stock: £6,200
  • Purchases: £39,300
  • Less Creditors 1/1/2008: £4,230
  • Closing Stock: £5,400

Cost of Goods Sold (COGS):
$6,200 + 39,300 - 4,230 - 5,400 = 36,870$

• Gross Profit:
  $56,200 - 36,870 = 19,330$

Thus, the Bar Profit for the year is £19,330.

The Income and Expenditure Account outlines the total income and expenses for the club:

Income:

• Subscriptions: £43,800
• Less subs prepaid 31/12/2008: £800
• Interest: £3,000
• Annual Sponsorship: £154,800
• Bar Profit: £19,330
• Lotto Receipts: £16,000

Total Income:
$43,800 - 800 + 3,000 + 154,800 + 19,330 + 16,000 = 235,330$

Expenditure:

• Expenses: £67,600
• Add expenses due 31/12/2008: £1,700

Total Expenses:
$67,600 + 1,700 = 69,300$

Surplus of Income/Expenditure:
$235,330 - 69,300 = 166,030$

Thus, the Surplus for the year is £166,030.

The Balance Sheet presents the financial standing of the club as of 31/12/2008:

Balance Sheet
As of 31/12/2008

Fixed Assets:

• Clubhouse: £430,000
• Land: £280,000
• Equipment: £140,000
• Investments: £50,000

Total Fixed Assets:
$430,000 + 280,000 + 140,000 + 50,000 = 900,000$

Current Assets:

• Bar Stock: £5,400
• Cash: £11,300

Total Current Assets:
$5,400 + 11,300 = 16,700$

Total Assets:
$900,000 + 16,700 = 916,700$

Liabilities:

• Bar Creditors: £430
• Expenses due: £1,700
• Subscriptions prepaid: £330

Total Liabilities:
$430 + 1,700 + 330 = 2,460$

Net Assets:
$916,700 - 2,460 = 914,240$

Financed by:

• Accumulated Fund: £914,240

Thus, the Balance Sheet reflects £914,240 in Net Assets.

The balance in the Income and Expenditure Account represents the net surplus or deficit for the accounting period, while the closing balance in the Receipts and Payments Account shows the cash position at the end of the period.

In this case, the Income and Expenditure Account demonstrates activities undertaken over the year and accounts for depreciation, while the Receipts and Payments Account consolidates cash inflows and outflows without considering accrued income or expenses.

Thus, any difference between these two balances can indicate non-cash items like depreciation or accrued accruals that affect reported profit but do not have an immediate effect on cash flow.