FA - May 2016 - L1 - SB - Q2 - Accounts of Not-for-Profit Entities

FA – May 2016 – L1 – SB – Q2 – Accounts of Not-for-Profit Entities

Preparing bar trading account, income and expenditure account, and financial position for ABUBA Social Club for March 31, 2016.

Question

The following is a summary of the receipts and payments for the year to March 31, 2016 of ABUBA Social Club:

Receipts:

Description	N’000
Club subscriptions	255,000
Donation	22,500
Christmas dance	12,750
Bar takings	405,000

Payments:

Description	N’000
Rates	13,500
General expenses	393,000
Bar purchases	277,500
Christmas dance expenses	2,250

Other relevant information at the beginning and end of the year is as follows:

Details	April 1, 2015 (N’000)	March 31, 2016 (N’000)
Subscriptions due	13,500	9,000
Subscriptions paid in advance	750	1,500
Rates owing	6,750	7,500
Bar inventory	30,000	37,500
Club premises (cost N750,000,000)	300,000	270,000
Furniture (cost N150,000,000)	45,000	30,000
Bank balance	24,000	33,000

You are required to prepare:
a. Club’s Bar Trading Account for the year ended March 31, 2016. (3 Marks)
b. The Income and Expenditure Account for the year ended March 31, 2016. (8 Marks)
c. The Statement of Financial Position as at March 31, 2016. (9 Marks)

Answer

ABUBA Social Club
Statement of Financial Position as at 31 March, 2016