Non-Profit Making Organisations
For You To Do 8: Solution
a. Prepare a statement showing the club's accumulated fund at 01/01/04:
Remember to apply the non-profit making organisation's revised accounting equation:
assets = liabilities + accumulated fund
to find the opening balance in the accumulated fund.
| Pudsey Sports and Social Club Accumulated Fund at 01/01/04 | |||
|---|---|---|---|
| Assets | Liabilities + Accumulated Fund | ||
| Cash in hand 01/01/04 | 2,961 | General expenses owing | 641 |
| Land and buildings | 120,885 | Balance c/d | 177,211 |
| Machinery and Equipment | 23,420 | ||
| Bar stock | 4,172 | ||
| Investments | 24,981 | ||
| Subscriptions due | 1,433 | ||
| 177,852 | 177,852 | ||
b. Prepare the club's income and expenditure account for the year ended 31/12/04:
The IEA that follows is again given in vertical format and where possible we have just put the final surplus or deficit figure in rather than putting all of the detail in. For example, we have opened an account for subscriptions and just shown the final figure on that account in the IEA. The same applies to the bar and to general expenses.
| Pudsey Sports and Social Club Income and Expenditure Account for the year ended 31/12/04 | ||||
|---|---|---|---|---|
| Note | ||||
| Subscriptions for the year | 1 | 32,147 | ||
| Surplus on bar a/c | 2,3 | 32,353 | ||
| Interest | 1,399 | |||
| Gross surplus before deficit on competitions | 65,899 | |||
| Deficit on competitions | 4 | 1,776 | ||
| Gross Surplus | 64,123 | |||
| less | Expenses | |||
| General expenses for the year | 5 | 24,771 | ||
| Depreciation of machinery and equipment | 6 | 5,095 | 29,866 | |
| Net surplus carried forward to accumulated fund | 34,257 | |||
Here are all of the notes to explain the adjustments we have made for the IEA.
| Notes | |||
|---|---|---|---|
| 1 | Subscriptions a/c | Dr | Cr |
| Balance b/d | 1,433 | ||
| Subscriptions | 35,176 | ||
| Prepayments c/d | 1,596 | ||
| Subscriptions for the year | 32,147 | ||
| 35,176 | 35,176 | ||
| 2 | Bar a/c | ||
| Bar sales | 72,704 | ||
| Bar stock as at 01/01/04 | 4,172 | ||
| Bar purchases for the year | 38,827 | ||
| Bar stock as at 31/12/04 | 2,648 | ||
| Surplus on bar a/c | 32,353 | ||
| 42,999 | 75,352 | ||
| 3 | Bar purchases a/c | ||
| Bar purchases | 38,546 | ||
| Bar creditors | 281 | ||
| Bar purchases for the year | 38,827 | ||
| 38,827 | 38,827 | ||
| 4 | Competitions a/c | ||
| Competition receipts | 2,216 | ||
| Competition costs | 3,992 | ||
| Deficit on competitions | 1,776 | ||
| 3,992 | 3,992 | ||
| 5 | General Expenses a/c | ||
| General expenses owing at 01/01/04 | 641 | ||
| General expenses | 25,686 | ||
| General expenses prepaid | 274 | ||
| General expenses for the year | 24,771 | ||
| 25,686 | 25,686 | ||
| 6 | Machinery and equipment a/c | ||
| Machinery and equipment as at 31/12/04 | 23,420 | ||
| Purchase of equipment | 19,038 | ||
| Depreciation | 5,095 | ||
| Balance c/d | 37,363 | ||
| 42,458 | 42,458 | ||
c. Prepare the club's balance sheet as at 31/12/04:
| Pudsey Sports and Social Club Balance Sheet as at 31/12/04 | |||
|---|---|---|---|
| Fixed Assets | |||
| Land and buildings | 120,885 | ||
| Machinery and equipment | 37,363 | ||
| Investments | 24,981 | ||
| 183,229 | |||
| Current Assets | |||
| Bar stock | 2,648 | ||
| General expenses prepaid | 274 | ||
| Cash balance 31/12/04 | 27,194 | 30,116 | |
| Total assets | £213,345 | ||
| Accumulated Fund b/d | 177,211 | ||
| Net Surplus carried forward to accumulated fund | 34,257 | ||
| Accumulated Fund b/d | 211,468 | ||
| Bar creditors | 281 | ||
| Subscription prepayments | 1,596 | 1,877 | |
| £213,345 | |||