Sports T is a club that provides sporting facilities for its members. The club hires all sporting equipment.
The club also operates a small café that sells food and refreshments for use by members and guests. All café sales are made on a cash basis.
The club treasurer has supplied the following details for the year ending 31 December 2023:
Receipts during the year: Café sales $27000; Members’ subscriptions $162000; Bank interest $720.
Payments made during the year: Sports coaches’ salaries $58220; Administration salaries $31720; Café assistant’s wages $14352; Rent of premises $16250; Hiring costs - sports equipment $31900; Rates and insurance $3200; Purchases of food and drink for resale $8220; Accountancy fees $2400.
Balances at 1 January 2023: Inventory of food & drink $1290; Subscriptions owing from previous year $1520; Receipts and payments account $3300 debit.
Balances at 31 December 2023: Inventory of food & drink $1340; Subscriptions received in advance $2800; Subscriptions outstanding $1280.
Additional information:
1. The agreement for hiring the sports equipment is $34 800 per annum and payment is made monthly.
2. Rent of premises is paid for the period from 1 January 2023 up to 31 January 2024.
(a)[5]
Draw up the café income statement for the year ended 31 December 2023.
(b)[5]
Draw up the subscriptions account in the books of Sports T club for the year ending 31 December 2023. Balance the account and bring the balances down on 1 January 2024.
(c)[10]
Draw up the income and expenditure account of Sports T club for the year ended 31 December 2023.
Worked solution & mark scheme
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