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

Additional information :

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 ]