These eight questions follow the order of a club question: cash records first, then subscriptions, the tuck shop and the accumulated fund. Write your own working before opening each answer.
The notes are in clubs and societies accounts. You can also set a timer with the timed original practice session builder.
Questions 1 to 4: records and subscriptions
Question 1. Which of these do not appear in income and expenditure: (a) donations received, (b) a new sound system bought, (c) a loan received, (d) depreciation on the sound system?
Answer
(b) and (c) do not appear. The sound system purchase is a capital item and the loan is a liability. Donations are income, and depreciation is an expense.
Question 2. Hall rent paid is RM1 800. RM150 is owing at the year end. Find the figure for income and expenditure.
Answer
1 800 + 150 = RM1 950. The RM150 was used in the year but not paid, so it is added.
Question 3. Cash received for subscriptions is RM5 200. Opening arrears are RM400, opening advance RM100, closing arrears RM300 and closing advance RM200. Find the subscription income.
Answer
5 200 − 400 + 300 − 200 + 100 = RM5 000.
Account check: credit side 100 + 5 200 + 300 = 5 600, other debits 400 + 200 = 600, balance 5 000.
Question 4. The club has 125 members paying RM40 each a year. Cash received is RM4 700, opening arrears are RM200 and closing arrears are RM500, with no advance. Is the income consistent with the member count?
Answer
Expected income = 125 × 40 = RM5 000. Income from the cash figure = 4 700 − 200 + 500 = RM5 000.
The two agree, so the working is consistent. A gap would signal a missed balance.
Questions 5 to 8: tuck shop and accumulated fund
Question 5. The tuck shop paid suppliers RM2 400. Creditors were RM200 at the start and RM350 at the end. Find the purchases.
Answer
Purchases = 2 400 + 350 − 200 = RM2 550.
Question 6. Sales are RM3 800, opening inventory RM150, closing inventory RM250, and purchases RM2 550. Find the trading profit.
Answer
Cost of goods sold = 150 + 2 550 − 250 = RM2 450. Trading profit = 3 800 − 2 450 = RM1 350.
Question 7. Opening assets are RM7 500 and opening liabilities are RM900. The club makes a surplus of RM1 100. Find the closing accumulated fund.
Answer
Opening fund = 7 500 − 900 = RM6 600. Closing fund = 6 600 + 1 100 = RM7 700.
Question 8. Explain why adding the surplus to cash as well as to the accumulated fund is wrong.
Answer
The surplus is already inside the assets, mainly as cash. Adding it again would make the statement of financial position exceed the accumulated fund. The surplus has one home, the accumulated fund.
If you got these wrong
Return to the lesson that matches the question.
- Questions 1 and 2: distinguishing receipts and payments from income and expenditure.
- Questions 3 and 4: calculating subscription income.
- Questions 5 and 6: accounting for trading activities.
- Questions 7 and 8: preparing the accumulated fund and financial position.
A teacher in one-to-one Accounting tuition can go through your working if the same step keeps failing. Use the mistake log and paper-error review to find your pattern first.