Unit: Financial accounting
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Login to Access| Receipts and payments account |
| Sh.“000” | Sh.“000” | ||
| Balance brought forward | 2,900 | Competition prizes | 2,800 |
| Subscriptions received | 70,800 | Salaries and wages | 14,000 |
| Competition receipts | 12,000 | Dinner dance expenses | 6,800 |
| Dinner dance ticket sales | 13,000 | Insurance | 9,200 |
| Donations | 1,000 | Purchase of equipment | 40,000 |
| Sale of equipment | 25,000 | General expenses | 30,100 |
| Electricity | 1,400 | ||
| Balance carried forward | 20,400 | ||
| 124,700 | 124,700 |
| 1. | The following further details of the club’s assets and liabilities have been availed: | ||
| 1 November 2024 | 31 October 2025 | ||
| Sh.“000” | Sh.“000” | ||
| Clubhouse | 130,000 | 130,000 | |
| Equipment | 140,000 | 120,000 | |
| Electricity expenses owing | 400 | 200 | |
| Subscriptions due | 2,500 | 2,900 | |
| Subscriptions paid in advance | 6,200 | 4,100 | |
| Stock of competition prizes | 600 | 200 | |
| 2. | During the year ended 31 October 2025, equipment with a book value of Sh.30 million was sold for Sh.25 million. |
| 3. | Of the subscriptions due on 1 November 2024, Sh.220,000 remained unpaid at the year end. The management resolved to treat this amount as an irrecoverable debt. |
Required: | |
| (i) | The income and expenditure account for the year ended 31 October 2025. |
| (ii) | Statement of financial position as at 31 October 2025. |
| Receipts: | Sh.“000” | Sh.“000” | |
| Balance as at 1 January 2024 | 786 | ||
| Subscription received for: | 2023 | 2,100 | |
| 2024 | 21,525 | ||
| 2025 | 1,800 | ||
| Restaurant sales | 91,920 | ||
| Donation received | 1,200 | ||
| 119,331 | |||
| Payments: | |||
| Payment for restaurant supplies | 57,930 | ||
| Groundsmen wages | 29,908 | ||
| Restaurant staff wages | 12,936 | ||
| Restaurant expenses | 351 | ||
| Repair to stands and pavilion | 1,110 | ||
| Gym rent and upkeep | 2,744 | ||
| Management expenses | 1,407 | ||
| Transport costs | 3,630 | 110,016 | |
| Balance as at 31 December 2024 | 9,315 | ||
| 1. | The following balances were available as at 31 December: | ||
| 2023 Sh.“000” | 2024 Sh.“000” | ||
| Inventory in the restaurant | 6,744 | 8,337 | |
| Owing for restaurant supplies | 4,941 | 6,510 | |
| Accrued restaurant expenses | 338 | 504 | |
| Transport cost accrued | - | 398 | |
| 2. | The gym equipment as at 31 December 2023 was valued at Sh.3,750,000 and is to be depreciated at the rate of 20% per annum. |
| 3. | Subscriptions owing by members amounted to Sh.2,100,000 on 31 December 2023 and Sh.2,625,000 on 31 December 2024. |
| 4. | As at 31 December 2023, land was valued at Sh.60 million and the pavilion at Sh.30 million. The pavilion was depreciated at the rate of 10% per annum on cost. |
Required: | |
| (i) | Restaurant statement of profit or loss for the year ended 31 December 2024. |
| (ii) | Restaurant income and expenditure account for the year ended 31 December 2024. |
| Vijana Youth Club Receipt and payments account |
| Sh.“000” | Sh.“000” | ||
| Balance brought forward | 1,400 | Motor vehicle | 26,000 |
| Subscriptions | 25,800 | Water and electricity | 3,520 |
| Bar takings | 40,000 | Secretary honoraria | 720 |
| Donations | 9,600 | Bar wages | 2,800 |
| Sale of equipment | 800 | Administrative staff salaries | 12,800 |
| Sale of magazines | 3,200 | Bar payables | 29,600 |
| Competition tickets | 7,200 | Ground maintenance | 4,400 |
| Insurance | 4,800 | ||
| Balance carried forward | ? | ||
| 88,000 | 88,000 |
| 1. | Investment income of 10% per annum is receivable as at 30 June 2024. |
| 2. | During the year ended 30 June 2024, equipment with a net book value of Sh.600,000 was disposed of for Sh.800,000. |
| 3. | Depreciation policy is on a reducing balance basis at the following rates: |
| 3. | Asset | Rate per annum (%) |
| Motor vehicle | 10 | |
| Equipment | 20 |
| 4. | The following balances were provided for the years ended 30 June: |
| 4. | 2023 Sh.“000” | 2024 Sh.“000” | |
| Bank | 1,400 | ? | |
| Land at cost | 10,000 | 10,000 | |
| Motor vehicles | 20,000 | ? | |
| Equipment | 14,400 | ? | |
| Investment at cost | 40,000 | 40,000 | |
| Bar inventory | 880 | 1,440 | |
| Bar payables | 1,600 | 2,000 | |
| Subscription in arrears | 1,840 | 1,480 | |
| Subscriptions in advance | 2,880 | 720 | |
| Accrued insurance | 800 | 1,200 | |
| Accrued electricity | 400 | 520 | |
| Accrued bar wages | - | 600 |
| Required: | |
| (a) | Bar statement of profit or loss for the year ended 30 June 2024. |
| (b) | Income and expenditure account for the year ended 30 June 2024. |
| (c) | Statement of financial position as at 30 June 2024. |
| 1. | As at 1 April 2023, the club’s bank balance amounted to Sh.7,050,000. |
| 2. | During the year ended 31 March 2024, the amount of subscription received amounted to Sh.12,525,000 out of which there was Sh.325,000 represented subscription in arrears. Sh.11,400,000 represented subscription for the current year while Sh.225,000 was subscription received in advance. |
| 3. | The club received donations amounting to Sh.7,800,000 for repairing a roof that was leaking and Sh.12,250,000 for putting up a new building. |
| 4. | The 100,000 shares which the club acquired in Bidii Ltd. paid a dividend of Sh.3 per share. |
| 5. | Office furniture acquired during the year ended 31 March 2024 cost the club Sh.5,000,000. Half of the amount was paid and the balance is to be paid during the year ending 31 March 2025. |
| 6. | During the year ended 31 March 2024, the club started printing magazines for sale to the public. As at 31 March 2024, the club had printed 35,000 magazines at a cost of Sh.120 each and sold 32,500 magazines at a price of Sh.170 each. |
| 7. | Other payments made during the year ended 31 March 2024 include:
|
| Required: | |
| (i) | Subscriptions account for the year ended 31 March 2024. |
| (ii) | Receipts and payments account for the year ended 31 March 2024. |
| Sh.“000” | Sh.“000” | |
| Golf course at cost | 80,000 | |
| Club house at cost | 20,000 | |
| Investments representing the building fund: | ||
| Ordinary shares | 7,400 | |
| Deposit with Jamii Building Society | 12,000 | 19,400 |
| Subscriptions received in advance | 400 | |
| Creditors for bar supplies | 350 | |
| Life membership fund | 5,000 | |
| Subscriptions in arrears | 600 | |
| Bar inventory | 4,850 | |
| Club house equipment at cost | 3,400 | |
| Cash in hand | 100 | |
| Bank balance | 950 | 1,050 |
| Sh.“000” | |
| Receipts: | |
| Subscriptions | 26,000 |
| Life membership fees | 2,000 |
| Tournament fees | 1,000 |
| Bar sales | 28,600 |
| Dividend from ordinary shares | 800 |
| Sh.“000” | |
| Payments: | |
| Maintenance of golf course | 17,150 |
| General club house expenses | 12,150 |
| Utilities | 1,528 |
| Bar supplies | 23,500 |
| Purchase of club house equipment | 700 |
| Deposit into Jamii Building Society | 800 |
| Repainting of club house | 1,260 |
| 1. | The club maintains a building fund separate from the accumulated fund and life membership fund. The building fund is invested in ordinary shares and also deposited into Jamii Building Society. |
| 2. | Jamii Building Society has been instructed to credit the interest on the club’s deposits to the club’s account at each half year. Jamii Building Society computes interest half yearly on 28 February and 31 August. For the year ended 31 August 2023, the interest amounted to Sh.840,000. Dividends paid on the ordinary shares are also added to the building fund by paying them into the building society account. |
| 3. | There were five life members as at 1 September 2022, one of whom died before the end of the year. Two other life members joined the club during the year. Life membership fee is Sh.1,000,000 per member. When a life member dies, his contribution is transferred to the accumulated fund. |
| 4. | General club house expenses included bar wages of Sh.4,200,000. |
| 5. | Balances as at 31 August 2023 were as follows: | |
| Sh.“000” | ||
| Creditors for bar supplies | 1,600 | |
| Subscriptions in advance | 900 | |
| Subscriptions in arrears | 300 | |
| Bar debtors | 650 | |
| 6. | As at 31 August 2023, bar inventory was valued at Sh.4,350,000. |
| 7. | An insurance premium of Sh.480,000 was also included in the general club house expenses that had been paid by cheque. The insurance premium was for the year ended 30 November 2023. |
Required: | |
| (a) | Bar statement of profit or loss for the year ended 31 August 2023. |
| (b) | Statement of income and expenditure for the year ended 31 August 2023. |
| (c) | Statement of financial position as at 31 August 2023. |
| Sh.“000” | |
| Assets | |
| Non-current assets: | |
| Building at cost | 15,000 |
| Sports equipment (net book value) | 10,500 |
| Current assets: | |
| Cash at bank | 18,150 |
| Sports shoes inventory | 9,000 |
| Bar inventory | 12,000 |
| Prepaid rent (2 months) | 3,000 |
| Accrued subscriptions | 900 |
| 68,550 | |
| Liabilities and accumulated fund: | |
| Life membership fund | 21,000 |
| Subscriptions in advance | 1,800 |
| Accrued insurance (3 months) | 2,250 |
| Accumulated fund | 43,500 |
| 68,550 |
| Receipts | Sh.“000” | Payments | Sh.“000” |
| Balance brought forward | 18,150 | Rent (for 12 months) | 18,000 |
| Subscriptions received for the year ended 30 September: | Bar manager’s wages | 30,000 | |
| - 2021 | 600 | Bar supplies | 28,500 |
| - 2022 | 16,500 | Building repairs | 6,750 |
| - 2023 | 1,200 | Purchases of sports equipment | 7,500 |
| - Life membership | 3,000 | 18 months insurance | 13,500 |
| Sale of sports shoes | 13,500 | Purchase of sports shoes | 7,500 |
| Sale of sports equipment | 210 | ||
| Bar sales | 69,900 | Balance carried forward | 11,310 |
| 123,060 | 123,060 |
| Sh.“000” | Sh.“000” | |
| Sundry income | 96,508 | |
| Expenditure | ||
| Use of premises | 19,248 | |
| Printing, postage and stationery | 3,132 | |
| Overdue members subscriptions written off | 480 | |
| Members welfare | 2,080 | |
| Bar purchases | 30,880 | |
| Wages | 8,320 | |
| Reference books purchased | 9,324 | (73,464) |
| Surplus for the year | 23,044 |
| Sh.’000' | ||
| Assets | Minibus (Cost:: 1 January 2018) | 24,000 |
| Library and furniture | 5,520 | |
| Members subscriptions due | 21,600 | |
| Cash in hand | 480 | |
| Bank: Fixed deposit account | 6,000 | |
| Current account | 11,240 | |
| 10% Treasury bond (Sh.10 million nominal value) | 40,000 | |
| 108,840 | ||
| Less: Owing for bar purchases | 7,468 | |
| Club funds as at 31 December 2020 | 101,372 |