Accounting 0452 · IGCSE · Clubs and societies

Clubs and societies — practice question

RIA Music Club owns its own premises, which include a shop and several music rooms. Shop sales are paid for in cash and shop purchases are made on credit. Mark-up is 20%. The treasurer has supplied the information below.
(a)[6]

Prepare the subscriptions account for the year ended 31 December 2020, then balance it and bring the balances down on 1 January 2021.

(b)[6]

Prepare the total shop trade payables account for the year ended 31 December 2020 so that the amount paid to shop trade payables can be calculated.

(c)[3]

Calculate the shop sales revenue for the year ended 31 December 2020.

(d)[5]

Advise the treasurer on whether renting part of the premises is the best way to improve cash flow, or whether other methods would be more suitable. Support your answer.

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