Cw 3 – Non-profit making organisation

SEKOLAH HARAPAN BANGSA

ACADEMIC YEAR 2020/2021

Name : _____________________________________ Score Teacher’s Signature Parent’s Signature

Subject : Accounting
Class : JC1 Science & Social
Day/ Date : Tuesday/23 Feb 2021
Time : 80 minutes

Structured questions [total points 50]

1. The Hutt River Dining Club is funded partly by the member’s annual subscriptions ($40 per member)
and partly by restaurant takings. At the 31 December 2019, the club’s Statement of Financial Position
showed the following:

$
Catering equipment at cost 8 000
Inventory of food 200 Receipts and payments for the
Subscriptions owing 180 year ended 31 December 2020
Cash at bank 1 520 were as follows:
9 900
Receipts in advance
Subscriptions $ (60)
Annual subscriptions
Accumulated fund at 1 January 2020 5 000 9 840
Restaurant takings 76 250
Payments
Restaurant staff wages 40 500
Cost of food 26 250
New catering equipment 4 000
Heating and lighting 8 125
Sundry expenses 2 750

Further information:
1. Subscriptions owing at 31 December 2020 $40.
2. Subscriptions paid in advance at 31 December 2020 $140.
3. Inventory of food at 31 December 2020 $270.
4. Annual depreciation of catering equipment is 10% on cost (use percentage of your name).

Required:

a. Prepare a Receipts and Payments Account for the year ended 31 December 2020.
b. Prepare the Members Subscriptions Account for the year ended 31 December 2020.
c. Prepare the Trading Account of Restaurant for the year ended 31 December 2020.
d. Prepare The Hutt River Dining Club’s Income and Expenditure Account for the year ended 31
December 2020.
e. Prepare the Statement of Financial Position as at 31 December 2020.

Answer sheet:

The Hutt River Dining Club

Receipts and Payments Account for the year ended 31 December 2020 [10]
2020 $ 2020 $
Jan 1 Balance b/d 1520 Dec 31 Staff wages 40 500
Dec 31 Subscriptions 5000 Cost of food 26 250
Restaurant takings 76 250 Catering equipment 4000
Heating and lighting 8125
Sundry expenses 2750
Balance c/d 1145
82 770 82 770
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 2021
Jan 1 Balance b/d 1145

The Hutt River Dining Club

Subscriptions Account for the year ended 31 December 2020 [10]
2020 $ 2020 $
Jan 1 Balance b/d 180 Jan 1 Balance b/d 60
Dec 31 I & E A/c 4780 Dec 31 Rec. & Pay. A/c 5000
Prepaid 140 Subscriptions 40
subscriptions c/d owing c/d
5100 5100
2021 2021
Jan 1 Balance b/d 40 Jan 1 Balance b/d 140

The Hutt River Dining Club

Trading Account of Restaurant for the year ended 31 December 2020 [11]
$ $
Takings 76 250
Less cost of sales:
Inventory at 1 January 2020 200
Purchases 26 250
26 450
Inventory at 31 December 2020 (270) 26 180
Gross profit 50 070
Staff wages 40 500
Depreciation of catering equipment (8000+4000)=12000x0.1 (41 700)
0 = 1200
Net profit 8370

The Hutt River Dining Club

Income and Expenditure Account for the year ended 31 December 2020 [7]
$ $
Subscriptions 4780
Profit on restaurant 8370
13 150
Heating and lighting 8125
Sundry expenses 2750 (10 875)
Surplus of income over expenditure 2275

The Hutt River Dining Club

Statement of Financial Position for the year ended 31 December 2020 [12]
$ $
Catering equipment (12 000-1200) 10 800
Current assets:
Inventory of food 270
Subscriptions owing 40
Bank 1145
1455
Current liability:
Subscription in advance (140) 1315
12 115
Accumulated fund at 1 January 2020 9840
Surplus for the year 2275
12 115

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