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For You To Do 13: Solution - Non-Profit Making Organisations

Non-Profit Making Organisations

For You To Do 13: Solution

a. The entries we need to make are as follows:

RocURBaby Music Club IEA
For the year ended 31 December 2004
Signing on fees: charge for the year =(£50 * 30) ÷ 3 500
For the year ended 31 December 2005
Signing on fees: charge for the year =(£50 * 30) ÷ 3 500
For the year ended 31 December 2006
Signing on fees: charge for the year =(£50 * 30) ÷ 3 500

b. This part of the solution is more complex so the detailed workings are shown separate from the IEA entries.

RocURBaby Music Club IEA
For the year ended 31 December 2004
Signing on fees: charge for the year 500
For the year ended 31 December 2005
Signing on fees: charge for the year 1,105
For the year ended 31 December 2006
Signing on fees: charge for the year 1,945

The workings for this part of the question are:

Signing on fees paid
  2004 2005 2006
2004 1,500  
2005   1,815  
2006   2,520
Total 1,500 1,815 2,520

Signing on fees charged
  2004 2005 2006
2004 500 500 500
2005   605 605
2006   840
Total 500 1,105 1,945

Now look at Projecting the Fees Needed

Submitted by bized on Wed, 01/09/2004 - 12:00