Accounting 0452 · IGCSE · Clubs and societies

Clubs and societies — practice question

The Sporting Excellence Club offers sports facilities for its members, and it also operates a shop where members may purchase sportswear. The club’s assets and liabilities included the following. 31 December 2022 / 31 December 2023 Subscriptions received in advance $610 / $570 Subscriptions received in arrears $480 / $465 Insurance paid in advance $240 / $250 Shop inventory $2 500 / $2 750 Trade payables for shop supplies $2 140 / $2 470 The totals below were extracted from the club’s receipts and payments account for the year ended 31 December 2023. Receipts: Subscriptions received $11 950 Shop sales $31 890 Payments: Trade payables for shop supplies $23 290 Shop wages $3 268 Club rent and insurance $7 390 Other club expenses $1 122
(a)[6]

Set up the subscriptions account for the year ended 31 December 2023. Balance it and carry the balances down at 1 January 2024.

(b)[4]

Set up the rent and insurance account for the year ended 31 December 2023. Balance it and carry the balance down at 1 January 2024.

(c)[3]

Work out the shop purchases for the year ended 31 December 2023.

(d)[5]

Draft the income statement for the shop for the year ended 31 December 2023.

(e(i))[1]

State what is meant by the term accumulated fund.

(e(ii))[1]

State what is meant by the term income and expenditure account.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI