Leaving Cert Accounting Club Accounts: Club Accounts
Included in the as

Question

Club Accounts
Included in the assets and liabilities of Crest Wood Golf Club on 01/01/2018 were the following:

Clubhouse and course €550,000, bar stock €5,800, equipment at cost €26,000, investment interest due €400, bar debtors €480, life membership €4,500, creditors €750, wages due €1,640, levy reserve fund €30,000, subscriptions received in advance €1,000.

All fixed assets have 2 years accumulated depreciation on 01/01/2018.

The club treasurer has supplied the following account of the club's activities during the year ended 31/12/2018.

Receipts and Payments account for the year ended 31/12/2018

Receipts                                      €                       Payments                                         €
Subscriptions                            126,900         Balance 01/01/2018                        7,300
Catering receipts                                8,500         Bar purchases                                     38,700
Interest on 4% investments                     2,800         Catering purchases                             8,800
Bar receipts                                     66,200         Office expenses                                 40,000
Entrance fees                                   12,650         Coaching expenses                             6,000
Annual sponsorship                            15,500         National Lottery grant                           20,000
Competition receipts                             28,000         Bank loan and 18 months’ interest at
                                                              3% per annum 01/05/2018                 20,900
Transfer from building society               10,000         Balance 31/12/2018                           83,300

Total receipts                                  277,300         Total payments                                 277,300

You are given the following additional information and instructions:

(i) Bar stock (including catering stock €400) on 31/12/2018 was €13,600.

(ii) Bar debtors on 31/12/2018 were €500 and €1,230 respectively.

(iii) Investment interest due on 31/12/2018 was €300.

(iv) Subscriptions include:

1. Five new life memberships in addition to the fifteen from 2017.
2. Subscriptions for 2019 amounting to €900.
3. Levy for 2018 of €50 each from 600 members.
4. A further Levy for 2018 of €60 each from 20 members.

(v) The club has decided that life membership is to be discontinued in order to increase subscription income over a 10 year period.

(vi) The grant from the National Lottery was received on a once-off basis to support the provision of activities in the club. It is to be treated as income.

(vii) Equipment on 31/12/2018 is to be depreciated at the rate of 20% of cost per annum. Clubhouse and course are to be depreciated by 2% of cost.

(viii) Wages due on 01/01/2018 were €2,500 while wages paid up to 31/12/2018 were €6,000.

Required:

(a) Show the club’s accumulated fund (capital) on 01/01/2018.  
(b) Show the income and expenditure account for the year ending 31/12/2018.  
(c) Show the club’s balance sheet as at 31/12/2018.  
(d) The club would like to build a new driving range at a cost of €350,000. 
Outline the options available to the club in funding this project with reference to the accounts.

Show the club’s accumulated fund (capital) on 01/01/2018.

Assets:

Total Assets:

Liabilities:

Total Liabilities:

Accumulated Fund:

Show the income and expenditure account for the year ending 31/12/2018.

Income:

Total Income:

Expenditure:

Total Expenditure:

Surplus/Deficit:

Show the club’s balance sheet as at 31/12/2018.

Assets:

Total Assets:

Liabilities:

Total Liabilities:

Club Funds:

Total Club Funds:

Outline the options available to the club in funding this project with reference to the accounts.

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