Accounting Test Question NT No. 1 On Non-Trading Organization

November 27th, 2006 Comments off
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Accounting Test Question NT No 1:

Question:

ABC Sport Club produced the following information relating to the Club’s financial year ended 31 May 2006

Receipts and Payments Account for the year ended 31 May 2006

$

$

Balance at bank at 1 Jun 2005

1,076

Groundsmen’s wages

18,500

Sales of refresments

7,160

Purchase of refreshments

3.110

Subscriptions

70,066

Wages of refreshment staff

3,700

Social events- receipts

19,240

Repairs & renewals

21,240

Sports equipment, Dec 2005

30,000

Insurance

1,500

Rates

500

Telephone

222

Light & heat

368

Expenses of social events

15,110

Balance @ bank at 31 May 2006

3,292

97,542

97,542

Additional information :

31 May 2005

31 May 2006

Subscriptions in advance

100

450

Subscriptions in arrears

1,230

1,340

Rates prepaid

60

70

Insurance prepaid

210

340

Light & heat accrued

67

98

Sports equipment at net book value

15,000

?

Sports equipment is to be depreciated at 31 May 2006 on the reducing balance basis at the rate of 30% per annum, charging a full year’s depreciation in the year of purchase.

Required:

Prepare the following Ledger Accounts, posting the necessary adjustment and showing the transfer to the Income and Expenditure Account at 31 May 2006:

(a) Subscriptions

(b) Rates

© Insurance

(d) Light and Heat

(e) Sport Equipment

(25 marks)

[ Refer Answer ]

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