1 The financial year of the Hillcrest Athletics Club ends on 30 April.

In addition to providing training facilities for members, the club also runs a café for members and
visitors.

The treasurer provided the following information.

At 1 May 2015 At 30 April 2016

$ $
Subscriptions prepaid 1045 -
Subscriptions accrued 760 285
Rent, rates and insurance prepaid 155 180
Café inventory 790 850
Café suppliers 1292 1137

During the year ended 30 April 2016:

Amounts received $ Amounts paid $

Subscriptions 16 910 Café suppliers 7 998
Café sales 10 430 Rent, rates and insurance 4 860
Proceeds of sale of old New equipment 16 300
equipment 1 059 General expenses 14 794

During the year, all the equipment was sold and was replaced by new equipment. At the date of
sale, the net book value of equipment was $956.

Equipment is depreciated by 15% per annum on the cost of equipment held at the end of each
year. No deprecation is charged in the year of disposal.

REQUIRED

(a) Prepare the income statement for the café for the year ended 30 April 2016.

Hillcrest Athletics Club

Café Income Statement for the year ended 30 April 2016
$ $

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

[7]

© UCLES 2016 0452/21/M/J/16

Page 1 of 42
 (b) Calculate the subscriptions for the year ended 30 April 2016.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...............................................................................................................................................[5]

(c) Prepare the income and expenditure account for the year ended 30 April 2016.

Hillcrest Athletics Club

Income and Expenditure Account for the year ended 30 April 2016
$ $

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

......................................................................................... ........................ ........................

[9]

[Total: 21]

© UCLES 2016 0452/21/M/J/16 [Turn over

Page 2 of 42
2 The Mokolodi Athletics Club was formed on 1 August 2009. For
Examiner's
Use
In addition to providing sports facilities for members, the Club also has a shop selling sports
clothing. All the shop sales are made on a cash basis.

The treasurer provided the following summary of the cash book for the year ended
31 July 2010.

Receipts $ Payments $

Subscriptions 7950 Sports equipment 6100

Shop sales 7500 Purchases of shop supplies 2950
Open day ticket sales 840 Open day expenses 690
Interest-free loan from Rent 5200
Sport for All 6000 Insurance 1700
General expenses 1990
Repairs and maintenance 1070
Wages – Groundsman 2500
– Shop assistant 1470

Additional information:

1 The Club has 170 members. The annual subscription is $50.

On 31 July 2010
15 members still owed their subscription for the current year.
4 members had paid their subscription for the year ending 31 July 2011.

2 At 31 July 2010
$
Creditors for shop supplies were owed 550
Shop inventory (stock) was valued at 650
Shop assistant’s wages owing amounted to 90
General expenses prepaid amounted to 140
Sports equipment was valued at 5400

3 It was decided that 20% of the rent should be charged to the shop.

© UCLES 2010 0452/23/O/N/10 [Turn over

Page 3 of 42
 10

REQUIRED For
Examiner's
Use
(a) Prepare the shop income statement (trading account) of the Mokolodi Athletics Club for
the year ended 31 July 2010.

Mokolodi Athletics Club

Shop Income Statement (Trading Account) for the year ended 31 July 2010

[8]

© UCLES 2010 0452/23/O/N/10

Page 4 of 42
 11

(b) Prepare the income and expenditure account of the Mokolodi Athletics Club for the For
year ended 31 July 2010. Examiner's
Use

Mokolodi Athletics Club

Income and Expenditure Account for the year ended 31 July 2010

[14]

© UCLES 2010 0452/23/O/N/10 [Turn over

Page 5 of 42
 12

For
(c) A member of the Club is worried because the surplus or deficit in the income and Examiner's
Use
expenditure account does not agree with the bank balance on 31 July 2010.

Explain one reason why the surplus or deficit does not equal the bank balance.

[2]

[Total: 24]

© UCLES 2010 0452/23/O/N/10

Page 6 of 42
 12

3 The Lodi Sports Club was formed some years ago.

The club has 150 members. The annual subscription is $100.

The club rents a sports centre at a monthly rent of $300.
A few years ago the club took out a bank loan of $5000 at 4% per annum interest.

The amounts received and paid during the year ended 31 January 2016 were as follows.

$
Subscriptions: for the year ended 31 January 2015 (2 members) 200
for the year ended 31 January 2016 (140 members) 14 000
for the year ending 31 January 2017 (5 members) 500
Rent for the year ended 31 January 2016 3 600
Rent for the year ending 31 January 2017 300
General expenses 1 454
Insurance 1 550
Purchase of new sports equipment 7 200
Proceeds of sale of old sports equipment (book value $400) 275
Bank interest and repayment of one quarter of the loan 1 400

REQUIRED

(a) Prepare the receipts and payments account for the year ended 31 January 2016.
Balance the account and bring down the balance on 1 February 2016.

Lodi Sports Club

Receipts and Payments Account for the year ended 31 January 2016

Date Details $ Date Details $

2015
........... ............................... ........... Feb 1 Balance b/d 210

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

........... ............................... ........... ........... ............................... ...........

[9]
© UCLES 2016 0452/22/F/M/16
Page 7 of 42
Income statement for the year ending 31 January 2016

Page 8 of 42
 13

(b) Calculate the total subscriptions which will appear in the income and expenditure account for
the year ended 31 January 2016.

...................................................................................................................................................

...............................................................................................................................................[2]

(c) Complete the following table to show the entries in the statement of financial position on
31 January 2016.

Statement of financial position

section amount ($)
Bank loan
Interest on bank loan
Rent
[6]

[Total: 17]

© UCLES 2016 0452/22/F/M/16 [Turn over

Page 9 of 42
 18

4 The financial year of VL Sports Club ends on 31 December. The treasurer provided the following
information about receipts and payments for the year ended 31 December 2020.

Receipts $
Subscriptions 19 200
Competition receipts 7 300
Dinner dance ticket sales 6 500

Payments $
Competition prizes 4 100
Dinner dance costs 6 200
Equipment 12 000
General expenses 11 500

The treasurer also provided the following information.

1 January 2020 31 December 2020

$ $
Equipment at net book value 23 000 30 000
General expenses owing 400 500
Subscriptions in arrears 700 300
Subscriptions in advance 1 100 900

Of the subscriptions in arrears on 1 January 2020 an amount of $80 had not been paid by
31 December 2020 and is to be written off as irrecoverable.

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 December 2020. Balance the
account and bring down the balances on 1 January 2021.

VL Sports Club
Subscriptions account

Date Details $ Date Details $

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

............... ..................................... ............... ............... ..................................... ...............

[8]

© UCLES 2021 0452/23/O/N/21

Page 10 of 42
 19

REQUIRED

(b) Prepare the income and expenditure account for VL Sports Club for the year ended
31 December 2020.

VL Sports Club
Income and Expenditure Account for the year ended 31 December 2020

$ $

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

............................................................................................... …………….... ……………....

[9]

© UCLES 2021 0452/23/O/N/21 [Turn over

Page 11 of 42
 20

The treasurer of VL Sports Club wants to encourage more members to pay their subscriptions in
advance by offering a 10% reduction in annual subscription fees.

(c) Advise the treasurer whether or not VL Sports Club should offer this reduction in annual
subscription fees to members who pay in advance. Justify your answer with one advantage
and one disadvantage.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [3]

[Total: 20]

Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every
reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the
publisher will be pleased to make amends at the earliest possible opportunity.

To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge
Assessment International Education Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download
at www.cambridgeinternational.org after the live examination series.

Cambridge Assessment International Education is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of the University of
Cambridge Local Examinations Syndicate (UCLES), which itself is a department of the University of Cambridge.

Page 12 of 42
 16

5 The Sew and Soup Club offers membership to people who are interested in sharing sewing and
knitting patterns. It runs a refreshment café for members. The club had the following assets and
liabilities at 31 December.

2020 2021

$ $

Subscriptions in advance 2 260 1 745

Subscriptions in arrears 1 820 2 115

Inventory of refreshments 1 070 1 130

Rent paid in advance 500 500

Trade payables for refreshment supplies 1 940 1 580

Bank balance 4 628 7 743

The following totals are for the year ended 31 December 2021.

Receipts

Subscriptions received (all by cheque) 13 900

Cash sales from refreshments 17 650

Payments

Rent 6 000

Wages 7 000

Other expenses 5 000

Trade payables for refreshment supplies 10 435

© UCLES 2022 0452/21/M/J/22

Page 13 of 42
 17

REQUIRED

(a) (i) Prepare the subscriptions account for the year ended 31 December 2021. Balance the
account and bring down the balances on 1 January 2022.

Sew and Soup Club

Subscriptions account

Date Details $ Date Details $

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

........... ................................ ............. ........... ................................ .............

[6]

(ii) Explain whether the treasurer should be satisfied with the amount of cash received from
member subscriptions during the year ended 31 December 2021.

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

...........................................................................................................................................

..................................................................................................................................... [3]

© UCLES 2022 0452/21/M/J/22 [Turn over

Page 14 of 42
 18

(b) Calculate the profit on refreshments for the year ended 31 December 2021.

$ $

.............................................................................................. ................... ...................

.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
[7]

(c) Prepare the current assets section of the club’s statement of financial position at
31 December 2021.
Sew and Soup Club
Statement of financial position (extract) at 31 December 2021

$ $

Current Assets
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
.............................................................................................. ................... ...................
[4]

[Total: 20]
© UCLES 2022 0452/21/M/J/22
Page 15 of 42
Income statement for the year ending 31 December 2021

Page 16 of 42
 11

6 RIA Music Club owns its premises where it has a shop and a number of music rooms.
Shop sales are for cash and shop purchases are on credit. Mark-up is 20%.
The treasurer provided the following information.

At At
1 January 31 December
2020 2020
$ $
Subscriptions in advance 1 200 1 050
Subscriptions in arrears 5 215 5 830
Total shop trade payables 4 275 4 990
Shop inventory 2 500 2 500
Balance at bank 240 110

For the year to 31 December 2020

Subscriptions received 36 700
Shop purchases 34 200
Shop purchases returns 1 710
Interest charged on overdue shop trade payables accounts 200

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 December 2020. Balance the
account and bring down the balances on 1 January 2021.

RIA Music Club

Subscriptions account
Date Details $ Date Details $

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

[6]

Page 17 of 42
 12

(b) Prepare the total shop trade payables account for the year ended 31 December 2020 to
calculate the amount paid to shop trade payables.

RIA Music Club

Total shop trade payables account
Date Details $ Date Details $

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ .................................... ............

............ .................................... ............ ............ ................................... ............

[6]

(c) Calculate the revenue from shop sales for the year ended 31 December 2020.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [3]

© UCLES 2021 0452/23/M/J/21

Page 18 of 42
 13

The treasurer is concerned about the decreasing bank balance and the increase in shop trade
payables. He is looking into the possibility of renting out part of the club premises to an art society
for $400 per month.

REQUIRED

(d) Advise the treasurer whether renting out part of the premises is the most suitable way of
improving cash flow or whether other methods may be more suitable. Justify your answer.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [5]

(e) Income statement for the year ending 31 December 2020

© UCLES 2021 0452/23/M/J/21 [Turn over

Page 19 of 42
Page 20 of 42
 8

7 The Favourite Book Club was formed several years ago. The subscription amount of $52 per
annum has remained unchanged since the club started. All subscriptions are paid by cheque or
credit transfer.

The treasurer provided the following information.

At At
1 January 31 December
2022 2022
$ $

Subscriptions in advance 260 156

Subscriptions in arrears 468 1040

Insurance paid in advance 348 366

Cash at bank 68 114

For the year to 31 December 2022:

Receipts $

Subscriptions received 5356

Payments

Rent paid 2080

Insurance paid 732

General expenses paid 2498

The club had 128 members in 2021 and 120 in 2022. The treasurer is aware that 4 current members
will not pay their subscriptions for 2022. She has decided to write these subscriptions off.

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 December 2022. Balance the
account and bring down the balances on 1 January 2023.

© UCLES 2023 0452/23/M/J/23

Page 21 of 42
 9

Favourite Book Club

Subscriptions account
Date Details $ Date Details $

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

............ ..................................... ............. ............ ..................................... ............

[7]

(b) Prepare the income and expenditure account for the year ended 31 December 2022.

Favourite Book Club

Income and Expenditure Account for the year ended 31 December 2022
$ $
......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

......................................................................................... ....................... .......................

[6]

© UCLES 2023 0452/23/M/J/23 [Turn over

Page 22 of 42
 10

The treasurer is considering increasing the subscription amount in order to obtain sufficient funds
to purchase computer equipment. The equipment would cost $400 and would be used to maintain
the club records.

REQUIRED

(c) Advise the treasurer whether she should fund the purchase of the computer equipment by
increasing the subscription amount. Justify your answer by making points for and against
increasing the subscription amount. Calculations are not required.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [5]

(d) State the meaning of the following terms:

(i) receipts and payments account

...........................................................................................................................................

..................................................................................................................................... [1]

(ii) accumulated fund

...........................................................................................................................................

..................................................................................................................................... [1]

[Total: 20]

Page 23 of 42
 4

8 BH Sports Club provides sporting facilities and a café for the use of its members and guests.

The club’s financial year ends on 31 July. The following information is available.

Assets and liabilities

At 1 August At 31 July
2019 2020
$ $
Bank 840 1270
Café inventory 520 770
Sports hall at book value 17 000 16 560
Insurance prepaid – sports hall and
sports equipment 400 440
Sports equipment at book value 3900 ?
Subscriptions in arrears 360 720
Subscriptions received in advance – 120
Wages accrued – café staff 60 80

Receipts and Payments Account for the year ended 31 July 2020
Details $ Details $
Balance b/d 840 Purchases of café supplies 8 190
Subscriptions received 9 960 Wages – café staff 2 750
Café takings 13 520 Wages – sports staff 5 220
Insurance – sports hall and
sports equipment 1 430
Sports equipment 2 100
Sports hall expenses 3 360
Balance c/d 1 270
24 320 24 320

Additional information

Sports equipment is depreciated at 10% per annum using the reducing balance method.

© UCLES 2020 0452/22/O/N/20

Page 24 of 42
 5

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 July 2020. Balance the account and
bring down the balances on 1 August 2020.

BH Sports Club
Subscriptions account

Date Details $ Date Details $

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

......... ...................................... .......... ......... ...................................... ..........

[6]

(b) Calculate the café profit for the year ended 31 July 2020.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................ [4]

© UCLES 2020 0452/22/O/N/20 [Turn over

Page 25 of 42
 6

(c) Prepare the income and expenditure account for the year ended 31 July 2020.

BH Sports Club
Income and Expenditure Account for the year ended 31 July 2020
$ $

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

……………………………………………………………........... ……………. …………….

[7]

(d) (i) State what the balance on BH Sports Club’s accumulated fund represents.

...........................................................................................................................................

...........................................................................................................................................

...................................................................................................................................... [1]

(ii) State the effect that the surplus or deficit on BH Sports Club’s income and expenditure
account for the year ended 31 July 2020 will have on the accumulated fund.

...........................................................................................................................................

...................................................................................................................................... [2]

[Total: 20]

Page 26 of 42
 6

9 The K Music Club provides facilities for listening to music and also provides a refreshment bar for
members. The club had the following assets and liabilities at 1 April 2019.

$
Subscriptions in advance 250
Subscriptions in arrears 845
Cash at bank 1 570
Cash in hand 130
Wages outstanding (refreshment bar) 140
Inventory (refreshment bar) 615
Fixtures and fittings at book value 11 200

REQUIRED

(a) Calculate the accumulated fund at 1 April 2019.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [4]

(b) State how the accumulated fund of a club is built up over time.

...................................................................................................................................................

............................................................................................................................................. [2]

The following information is available for the year ended 31 March 2020.

$
Subscriptions received (all by cheque) 8 500
Subscriptions written off as irrecoverable 155
Wages paid to refreshments bar staff 1 250

Balances at 31 March 2020 included the following.

$
Subscriptions in advance 215
Subscriptions in arrears 975
Wages outstanding (refreshments bar) 115

© UCLES 2020 0452/23/M/J/20

Page 27 of 42
 7

REQUIRED

(c) Calculate the refreshment bar staff wages for the year ended 31 March 2020.

...................................................................................................................................................

……………………………………………........ …………………………………………………… [2]

(d) Prepare the subscriptions account for the year ended 31 March 2020. Balance the account
and bring down the balances on 1 April 2020.

K Music Club
Subscriptions account
Date Details $ Date Details $

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

……… …………………………... ……….. ……… …………………………... ………..

[7]

© UCLES 2020 0452/23/M/J/20 [Turn over

Page 28 of 42
 8

(e) Advise the club treasurer whether or not club members should be required to pay their
subscriptions by direct debit. Justify your answer by providing two advantages and two
disadvantages.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

............................................................................................................................................. [5]

[Total: 20]

Page 29 of 42
 9

10 The financial year of the KS Sports Club ends on 31 July. The club has 150 members and the
annual subscription is $50.

On 1 August 2018 subscriptions were outstanding from 5 members and 2 members had paid their
subscription in advance for the next financial year.

On 31 July 2019 subscriptions had been paid in advance for the next financial year by 4 members.

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 July 2019 to show the amount
received for subscriptions during the year.
Balance the account and bring down the balance on 1 August 2019.

KS Sports Club
Subscriptions account

Date Details $ Date Details $

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

[6]

© UCLES 2019 0452/22/O/N/19 [Turn over

Page 30 of 42
 10

The treasurer of the KS Sports Club provided the following information.

$
At 1 August 2018

Bank overdraft 2620

5% loan from AB Loans 2000

Receipts and payments during the year ended 31 July 2019

Subscriptions received from members ?

Loan interest and repayment of loan 2100
Short-term interest-free loan received from a member 1000
General expenses 435
Rates and insurance 3120
Purchase of new sports equipment 4150
Repairs to sports equipment 215
Proceeds of sale of old sports equipment (book value $750) 870
Receipts from sports tournament 525
Expenses of sports tournament 335

At 31 July 2019

General expenses accrued 25

Insurance prepaid 150

© UCLES 2019 0452/22/O/N/19

Page 31 of 42
 11

(b) Prepare the receipts and payments account for the year ended 31 July 2019.
Balance the account and bring down the balance on 1 August 2019.

KS Sports Club
Receipts and Payments Account for the year ended 31 July 2019

Date Details $ Date Details $

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

............. .............................. ............. ............. .............................. .............

[13]

[Total: 19]

Page 32 of 42
(c) Income statement for the year ending 31 July 2019

Page 33 of 42
 10

1 1 : The ND Sports Club was formed on 1 January 2017.

As well as providing sporting facilities for members the club also has a café for members and
guests. Café supplies are purchased on credit and all café sales are made on cash terms.

The treasurer provided the following information on 31 December 2017.

$
Receipts during the year Subscriptions 14 850
Receipts from café sales 9 520
Net income from competition 710
Interest-free loan from Sport4U 5 000
30 080

Payments during the year Sports equipment 6 200

Café fixtures and fittings 3 500
Wages – sports coach 6 000
café assistant 4 000
General club expenses 540
Rent and insurance 3 700
Café suppliers 5 760
29 700

Additional information

1 At 31 December 2017
Café inventory was valued at $970.
Café suppliers were owed $130.
Café assistant’s wages accrued amounted to $160.

2 The payment for rent and insurance included $1200 for 12 months to 31 January 2018.

3 One quarter of the rent and insurance is to be allocated to the café.

4 The club has 300 members. The annual subscription is $50. On 31 December 2017
subscriptions were outstanding from 10 members and 7 members had already paid their
subscription for 2018.

5 Sports equipment and café fixtures and fittings are to be depreciated by 20% on cost.

© UCLES 2018 0452/22/F/M/18

Page 34 of 42
 11

REQUIRED

(a) Prepare the café income statement for the year ended 31 December 2017.

ND Sports Club
Café Income Statement for the year ended 31 December 2017

$ $

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

[7]

© UCLES 2018 0452/22/F/M/18 [Turn over

Page 35 of 42
 12

(b) Prepare the income and expenditure account for the year ended 31 December 2017.

ND Sports Club
Income and Expenditure Account for the year ended 31 December 2017

$ $

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

................................................................................. ......................... .........................

[9]

(c) State one item in the list of receipts and payments which does not appear in the income and
expenditure account. Give a reason for your answer.

Item ...........................................................................................................................................

Reason .....................................................................................................................................

...............................................................................................................................................[2]

Page 36 of 42
 13

(d) State one item in the income and expenditure account which does not appear in the list of
receipts and payments. Give a reason for your answer.

Item ...........................................................................................................................................

Reason .....................................................................................................................................

...............................................................................................................................................[2]

A member of the club has suggested that any surplus made by the club should be distributed
among the members.

REQUIRED

(e) Comment on this suggestion.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...............................................................................................................................................[2]

The owner of the premises rented by the club has offered to sell them to the club for $90 000.
A decision has to be made by 31 August 2018.

A member of the committee has suggested increasing subscriptions and holding fund-raising
events in order to raise the necessary finance.

REQUIRED

(f) State why the member’s suggestions are not suitable methods of raising the necessary
finance.

...................................................................................................................................................

...................................................................................................................................................

...............................................................................................................................................[1]

(g) Suggest one way in which the club could raise the necessary finance.

...............................................................................................................................................[1]

[Total: 24]

© UCLES 2018 0452/22/F/M/18 [Turn over

Page 37 of 42
 6

1 3 : The financial year of the NS Musical Society ends on 31 January.

On 31 January 2019 it was confirmed that the treasurer had disappeared and had taken some
money belonging to the NS Musical Society.

The new treasurer was able to provide the following information relating to the financial year ended
31 January 2019.

The Society has 60 members. The annual subscription is $50.

$
On 1 February 2018

Subscriptions accrued 100

Subscriptions prepaid 250
Bank overdraft 780
Musical instruments at book value 3600

During the year ended 31 January 2019

Payment of rates of premises covering 10 months to 30 November 2018 2000

Payment of insurance for 14 months to 31 March 2019 700
Receipts from sales of concert tickets 2560
Concert expenses paid 1610
Proceeds of sale of old musical instruments (book value $120) 100
Cost of musical instruments purchased 2100
(Half of this amount was paid immediately and the balance was
payable in February 2019)

At 31 January 2019

Bank overdraft 2430

Subscriptions prepaid 200

Musical instruments are depreciated at 10% per annum based on the value of instruments owned
at the end of each financial year.

© UCLES 2019 0452/22/M/J/19

Page 38 of 42
 7

REQUIRED

(a) Prepare the subscriptions account for the year ended 31 January 2019 to show the
subscriptions received during the year.
Balance the account and bring down the balance on 1 February 2019.

NS Musical Society
Subscriptions account

Date Details $ Date Details $

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

............... .................................. ............... ............... .................................. ...............

[7]

© UCLES 2019 0452/22/M/J/19 [Turn over

Page 39 of 42
 8

(b) Prepare the receipts and payments account for the year ended 31 January 2019 to calculate
the amount of money which is missing from Society funds.
Balance the account and bring down the balance on 1 February 2019.

NS Musical Society
Receipts and Payments Account for the year ended 31 January 2019

Date Details $ Date Details $

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

.............. ................................. .............. .............. ................................. ..............

[11]

Page 40 of 42
iNCOME STATEMENT FOR THE YEAR ENDING 31 JAN 2019

Page 41 of 42
 9

(c) Complete the following table to show the amount which would appear in the income and
expenditure account for the year ended 31 January 2019 for each item.

Item $

Concert ...................

Rates ...................

Insurance ...................

Depreciation of musical instruments ...................

Sale of musical instruments ...................

[6]

Workings

A member of the committee of the NS Musical Society has expressed concern about the bank
overdraft and has proposed that the annual subscription should be increased by $10.

REQUIRED

(d) Discuss the implications of increasing the annual subscription by $10.

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...................................................................................................................................................

...............................................................................................................................................[3]

[Total: 27]

© UCLES 2019 0452/22/M/J/19 [Turn over

Page 42 of 42