FINAL ACCOUNTS OF AS OLE TRADER

Document Sample
FINAL ACCOUNTS OF AS OLE TRADER Powered By Docstoc
					       A WebQuest for AS Level Accounting Students


           ACCOUNTS OF CLUBS AND SOCIETIES

                                Designed by:
                    Howard Gittins, Warwickshire College


                               Introduction

Imagine that you are the Treasurer a club called the Thelford Social Club
whose members meet monthly in a public hall to have a social evening.
Members pay an annual subscription to be a member and to receive the
monthly newsletter. Food and drinks can be purchased at the weekly social
meetings. Four times a year a trip is organised for members to seaside
locations – an extra fee is charged for these trips.

You keep the analysed Cash Book for the club and enter transactions as they
occur. This Cash Book allows you to total the various income and expenses
for the club for the year.

At the end of each year you make adjustments to the accounts for any income
(e.g. members’ subscriptions) not yet received and expenses not yet paid.

At the end of year meeting you have been asked to present an Income and
Expenditure Account and Balance Sheet.

Under the heading ‘Tasks’ (below) in this WebQuest you will see a Receipts
and Payments Account (which is a summary of the total from the analysed
Cash Book). You will be asked to enter the figures from this Receipts and
Payments Account into an Income and Expenditure Account (to calculate the
surplus of Income over Expenditure) and a Balance Sheet (which is a list of all
assets and liabilities for the club).

                                   Tasks

Using the figures from the following Receipts and Payments Account shown
below for the year ended December 31st 200X and other information given –
using the Spreadsheet (Click on the link on next line) –

                      A:\ANSWER_Q_Project_3.xls

Draw up:
                   1) Income and Expenditure Account for the year ended
                        December 31st 200X

                   2) Balance Sheet as at 31st December 200X
Assets at beginning of the year were – Bank balance as shown below,
Subscriptions in Arrears £900, Opening Stock of Drinks £1,000.

                               Thelford Social Club
                         Receipts and Payments Account
                     For the year ended December 31st 200X

Receipts:                                 Payments:
Bank balance b/d           3,680          Advertisements               430
Subscriptions             10,120          Barman’s wages              1,540
Bar Takings                4,650          Hire of Public Hall           750
Receipts for Trips          1250          Hire of coach for trips       920
Donations                    780          Insurance                     105
                                          Printing costs                240
                                          Purchases costs of drinks 2,920
                                          Purchase of computer          980
                                          Purchase of office equipment 530
                                          Balance                 c/d    ?

Notes:
1) Closing Stock of drinks at end of year = £1,200
2) Subscriptions in arrears at 31/12/05 = £370
3) Barman’s wages owing at 31/12/05 = £60
4) Printing costs owing at 31/12/05 = £25
5) Insurance in advance at 31/12/05 = £15
6) Using the Equal Instalment Method depreciate the computer at 40% on
cost and other office equipment at 20% on cost.

                                 Resources
The following web site will give details on Income and Expenditure Accounts
(for Clubs and Societies):

                               www.acca.org.uk

In the ‘Search’ box (bottom right of screen) - type in ‘Club and Societies’
(without the quote marks). From the list given, choose ‘Club and society
accounts’.

Study the case study and examples of Club and Societies Accounts.

                                   Process
Study the layout of an Income and Expenditure Account for a club.

Notice how ‘Net Profit’ is called ‘Excess of Income over Expenditure’ in the
Income and Expenditure Account.

Also notice that ‘Capital’ is called ‘Accumulated Fund’ in the Balance Sheet.

When you have understood the principles then complete Task 1 and 2 using a
Spreadsheet. Save and print your Final Accounts.
                              Assessment
Save your answer and hand in your printed Income and Expenditure Account
and Balance Sheet for the tasks above.



                              Conclusion

This WebQuest should have helped you to understand how an Income and
Expenditure Account and Balance Sheet for a club or society is drawn up. The
task also shows how a Spreadsheet can assist in calculation and
presentation.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:6
posted:11/9/2012
language:Unknown
pages:3