The ABC Piano Club offers amenities for its members. It also operates a coffee shop where members may purchase hot drinks and snacks.
The club’s assets and liabilities are shown below:
31 December 2023 / 31 December 2024
Pianos at cost $12000 / $12000
Pianos - Provision for depreciation $4800 / $6000
Subscriptions received in advance $650 / $715
Subscriptions received in arrears $390 / $325
Club insurance paid in advance $140 / $155
Club rent paid in arrears $435 / -
Coffee shop inventory $320 / $382
Trade payables for coffee shop supplies $200 / $186
Cash at bank (debit balances) $2045 / $4675
(a)[4]
Calculate the accumulated fund at 31 December 2023.
(b)[6]
Prepare the subscriptions account for the year ended 31 December 2024. Balance off the account and carry down the balances on 1 January 2025.
(c)[5]
Prepare the Club’s rent and insurance account for the year ended 31 December 2024. Balance off the account and carry down the balance on 1 January 2025.
(d)[5]
Prepare the income statement for the coffee shop covering the year ended 31 December 2024.
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme.