Leaving Cert Accounting Club Accounts: Club Accounts

Included in the a

Question

Club Accounts

Included in the assets and liabilities of Stretford Golf Club on 01/01/2015 were the following: clubhouse and course €650,000, bar stock €6,000, equipment at cost €24,000, bar debtors €355, life membership €40,000, wages due €1,600, subscriptions received in advance €1,400, investment interest due €300.

The club treasurer has supplied the following account of the club’s activities during the year ended 31/12/2015.

Receipts and Payments account for the year ended 31/12/2015

Receipts
€
Subscriptions
102,900
Catering receipts
6,500
Interest on 4% investments
2,500
Bar receipts
76,400
Entrance fees
3,000
Annual sponsorship
10,000
Equipment grant
25,000
Competition receipts
7,500

Total
260,100

Payments

€
Bank current account balance 01/01/2015
3,000
Bar purchases
8,500
Catering payments
9,200
Equipment
15,000
Sundry expenses
124,350
Loan interest (paid)
2,400
Bank loan payoff – bar debt
33,000
Balance 31/12/2015
15,670
Total
260,100

You are given the following information and instructions:

(i) Stocks on 31/12/2015: bar stock €6,000, catering stock €600.

(ii) Investment interest due on 31/12/2015 was €400.

(iii) Investments on 01/01/2015 is to be written off at 20% of cost.

(iv) Clubhouse and course to be depreciated by 2%.

(v) Expenditure includes:

Bar Trading Account bringing total income to 10.

Expenditure for 2015 amounting to €800.

(vi) The life membership fee of €40,000 is to be written off over a 10 year period.

(vii) The committee decided that the membership is to be credited to income over a 10 year period.

(viii) Debtors as club creditors on 31/12/2015 were €500 and €1,230 respectively.

Required:

(a) Show the club’s accumulated fund (capital) on 01/01/2015. (25)

(b) Show the income and expenditure account for the year ended 31/12/2015. (27)

(c) Distinguish between ‘levy’ and ‘life membership’. Explain how both are treated in the accounts. (8)

Show the club’s accumulated fund (capital) on 01/01/2015.

Assets:

Liabilities:

Accumulated Fund Calculation:

Show the income and expenditure account for the year ended 31/12/2015.

Income:

Expenditure:

Surplus/Deficit Calculation:

Distinguish between ‘levy’ and ‘life membership’. Explain how both are treated in the accounts.

Levy:

Life Membership:

Treatment in Accounts:

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