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Club Accounts Included in the assets and liabilities of St - Leaving Cert Accounting - Question 4 - 2012

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Club Accounts Included in the assets and liabilities of St. Thomas's Football Club on the 01/01/2011 were the following: Clubhouse/Pitches €570,000; Equipment €25,0... show full transcript

Worked Solution & Example Answer:Club Accounts Included in the assets and liabilities of St - Leaving Cert Accounting - Question 4 - 2012

Step 1

Prepare a statement showing the club's Accumulated Fund on 01/01/2011.

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Answer

To calculate the Accumulated Fund on 01/01/2011, we evaluate the total assets and subtract the total liabilities:

Assets

  • Clubhouse/Pitches: €570,000
  • Equipment: €25,000
  • Bar Stock: €5,700
  • Investments: €12,000
  • Cash: €8,600

Total Assets: 570,000+25,000+5,700+12,000+8,600=621,300570,000 + 25,000 + 5,700 + 12,000 + 8,600 = 621,300

Liabilities

  • Expenses due: €450

Total Liabilities: 450450

Accumulated Fund Calculation

Accumulated Fund on 01/01/2011: 621,300−450=620,850621,300 - 450 = 620,850

Step 2

Prepare a Bar Trading Account for the year ended 31/12/2011.

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Answer

To prepare the Bar Trading Account, we need to account for Bar Sales and the Cost of Sales:

Bar Sales

  • Total Bar Sales: €35,500

Cost of Sales

  • Opening Stock: €4,400 (Bar Stock at 01/01/2011)
  • Purchases: €26,200
  • Closing Stock: €4,440

Calculation of Cost of Sales: extCostofSales=extOpeningStock+extPurchases−extClosingStock ext{Cost of Sales} = ext{Opening Stock} + ext{Purchases} - ext{Closing Stock} =4,400+26,200−4,440=26,160= 4,400 + 26,200 - 4,440 = 26,160

Bar Trading Account Summary

  • Bar Profit: extBarSales−extCostofSales ext{Bar Sales} - ext{Cost of Sales} =35,500−26,160=9,340= 35,500 - 26,160 = 9,340

Step 3

Prepare the club's Income and Expenditure Account for the year ended 31/12/2011.

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Answer

The Income and Expenditure Account summarizes the financial performance of the club over the year.

Income

  • Bar Profit: €9,340
  • Subscriptions: €18,500
  • Less: Subscriptions prepaid: €960
  • Interest Received: €1,300

Total Income Calculation:

9,340+18,500−960+1,300=28,1809,340 + 18,500 - 960 + 1,300 = 28,180

Expenditure

  • General Expenses: €15,900
  • Equipment: €14,000
  • Competition Prizes: €5,500

Total Expenditure Calculation:

15,900+14,000+5,500=35,40015,900 + 14,000 + 5,500 = 35,400

Net Income Calculation:

extNetIncome=extTotalIncome−extTotalExpenditure ext{Net Income} = ext{Total Income} - ext{Total Expenditure} =28,180−35,400=−7,220= 28,180 - 35,400 = -7,220

Step 4

Explain the term: 'Subscriptions'.

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Answer

Subscriptions are periodic payments made by members to support the activities of the club. They are an essential source of income and are usually collected annually. These funds are typically used for maintenance, operational costs, and development of club facilities. The amount of the subscription may vary based on membership categories, such as individual, family, or honorary memberships.

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