Non-Profit Making Organisations
For You To Do 9: Solution
a. Prepare an analysed Receipts and Payments Account for the year ended 31 December 2004:
| Midlothian Sports Club Receipts and Payments Account for the year ended 31/12/04 | ||||||||
|---|---|---|---|---|---|---|---|---|
| Receipts | ||||||||
| Total | Subscriptions | Bar | Dance | Charity work | Furniture | Rent | Lighting & heating | |
| Balance at bank and cash in hand b/d | 1,437 | |||||||
| Subscriptions | 5,110 | 5,110 | ||||||
| Bar sales | 5,716 | 5,716 | ||||||
| Sales of dance tickets | 2,176 | 2,176 | ||||||
| Collections made on behalf of charities | 2,650 | 2,650 | ||||||
| Sale of old furniture | 150 | 150 | ||||||
| Balance at bank and cash in hand c/d | 1,300 | |||||||
| 18,539 | 5,110 | 5,716 | 2,176 | 2,650 | 150 | 0 | 0 | |
| Payments | ||||||||
| Total | Subscriptions | Bar | Dance | Charity work | Furniture | Rent | Lighting & heating | |
| Dance expenses | 749 | 749 | ||||||
| Rent ans rates of premises | 2,200 | 2,200 | ||||||
| Lighting & heating | 1,420 | 1,420 | ||||||
| Barman's wages | 2,500 | 2,500 | ||||||
| Steward's salary | 5,000 | 5,000 | ||||||
| Distributions to outside charities | 2,600 | 2,600 | ||||||
| Purchase of new furniture | 1,460 | 1,460 | ||||||
| Payments for bar purchases | 2,610 | 2,610 | ||||||
| 18,539 | 0 | 10,110 | 749 | 2,600 | 1,460 | 2,200 | 1,420 | |
b. Prepare an Income and Expenditure Account for the year ended 31 December 2004. The Income and Expenditure Account should show clearly the profit or loss on the various activities:
| Midlothian Sports Club Income and Expenditure Account for the year ended 31/12/04 | ||||
|---|---|---|---|---|
| Income | Note | |||
| Net subscriptions | 1 | 5,226.00 | ||
| Bar sales | 5,716.00 | |||
| Bar stocks at cost b/d | 540.00 | |||
| Purchases | 2 | 2,627.00 | ||
| Cost of goods available for sale | 3,167.00 | |||
| Bar stocks at cost c/d | 470.00 | |||
| Cost of bar sales | 2,697.00 | |||
| Surplus on bar sales | 3,019.00 | |||
| Barman's wages | 2,500.00 | |||
| Steward's salary | 5,000.00 | |||
| Net deficit on bar | (4,481.00) | |||
| Sales of dance tickets | 2,176.00 | |||
| Dance expenses | 749.00 | |||
| Surplus on dance | 1,427.00 | |||
| Surplus on disposal of furniture | 3,4 | 120.00 | ||
| Gross Income | 2,292.00 | |||
| Expenditure | ||||
| Rent and rates of premises | 2,200.00 | |||
| Rent unpaid c/d | 200.00 | 2,400.00 | ||
| Lighting & heating | 1,420.00 | |||
| Depreciation of furniture and fittings | 3 | 155.50 | 3,975.50 | |
| Net deficit | (1,683.50) | |||
| Notes | |||
|---|---|---|---|
| 1 | Subscriptions a/c | Dr | Cr |
| Subscriptions | 5,110 | ||
| Subscriptions paid in advance b/d | 310 | ||
| Subscriptions in arrear b/d | 24 | ||
| Subscriptions in arrears b/d | 40 | ||
| Subscriptions in advance b/d | 410 | ||
| Net subscriptions | 5,226 | ||
| 5,660 | 5,660 | ||
| 2 | Bar purchases a/c | ||
| Bar creditors b/d | 173 | ||
| Payments for bar purchases | 2,610 | ||
| Bar creditors c/d | 190 | ||
| Purchases | 2,627 | ||
| 2,800 | 2,800 | ||
| 3 | Furniture a/c (book value) | ||
| Furniture and fittings b/d | 3,110 | ||
| Purchase of new furniture | 1,460 | ||
| Disposal of old furniture | 270 | ||
| Depreciation for the period | 156 | ||
| Furniture and fittings c/d | 4,145 | ||
| 4,570 | 4,570 | ||
| 4 | Disposal of furniture a/c | ||
| Furniture | 270 | ||
| Receipts | 150 | ||
| Surplus on disposal | 120 | ||
| 270 | 270 | ||
5. I have assumed that the Steward's primary job is to work in the bar, hence that salary is in the Bar section of the Income and Expenditure account.
6. Note that the collections and distributions relating to the charities on behalf of which Midlothian Sports works has not appeared in the IEA. This is because Midlothian acts as an agent of the charities only and the monies cannot be classed as income or expenditure of the club.