AF 1203 - FINANCIAL ACCOUNTING - EXERCISE

QUESTION 1

From the following information, prepare Receipts and Payments Account of Mbawala Sports Club for the year
ended 31 December 2023.

Tshs’000
Cash as on 31 March 2023 1,200
Subscriptions received 2,500
Upkeep of fields 100
Admission fees 200
Salaries 750
Life membership subscriptions 300
Purchase of newspapers and magazines 180
Donations received 600
Subscriptions received for sports events 2,800
Charity given 270
Sale of old newspapers 40
Sale of old sports material 70
8% Investments 700
Expenses on events 1,300
Sale of old furniture 70
Purchase of sports material 1,250
Interest on 8% investments 36
Printing and stationery 100
Furniture 350
Receipts from charity show 1,600

QUESTION 2

From the following details of Kilimanjaro Charity Hospital, prepare Income and
Expenditure account and the statement of financial position as on 31 March 2023.

Receipts Tshs’000 Payments Tshs’000

Balance b/f Medicines 30,590
Cash 7,130 Doctor’s honorarium 9,000
Subscriptions 47,996 Salaries 27,500
Donations 14,500 Petty expenses 461
Interest on bank fixed deposit 7,000 Equipments 15,000
Charity show proceeds 10,450 Charity show expenses 750
Balance b/f
Cash 3,775
87,076 87,076

Additional information As on 31 March 2022 As on 31 March 2023

Tshs’000 Tshs’000
Subscription due 240 280
Subscription received in advance 64 100
Stock of medicines 8,810 9,740
Equipment (cost less depreciation) 21,200 31,600
Building (cost less depreciation) 40,000 38,000

Interest on bank deposit was received for the full year at the rate of 7%.
QUESTION 3:

The following are the items of receipts & payments of the KWAMCHINA Sports Club summarized from the books
of account maintained by the Secretary:
Receipts TZS Payments TZS

Opening balance (1.1.2013) 4,200,000 Manager’s salary

Entrance fees (2012) 1,000,000 Printing & Stationery 2,600,000

Entrance fees (2013) 10,000,000 Advertising 1,800,000

Subscriptions (2012) 600,000 Fire Insurance 1,200,000

Subscriptions (2013) 15,000,000 Investments Purchases 20,000,000

Interest received on investments 3,000,000 Closing Balance (31.12.2013) 7,600,000

Subscriptions (2014) 400,000

34,200,000 34,200,000

It was ascertained from enquiry that the following represented a fair picture of the income and expenditure of the
club for the year 2013 for audit purposes.
Expenditure TZS TZS Income TZS

Manager’s salary 1,500,000 Entrance fees 10,500,000

Printing & Stationery 2,000,000 Subscriptions 15,600,000

Add: Outstanding 400,000 2,400,000 Interest of investments 4,000,000

Advertising 1,600,000

Audit fees 500,000

Fire insurance 1,000,000

Depreciation 4,940,000

Excess of income over expenditure 18,160,000

30,100,000 30,100,000

It has been given that the book values of the non-current asset as on 1 st January 2013 were building TZS
44,000,000, cricket equipment TZS 25,000,000 and furniture TZS 4,000,000. The rates of depreciation on buildings
is 5%, on cricket equipment is 10% and on furniture is 6%.

Required:

Prepare the Statement of Financial Position of the club as at 1st January 2013 and 31st December 2013
Question 4

The following is a summary of the receipts and payments of the Lynton Sports and Social Club for the
year ended 30 June 2022:
TZS
Receipts
Restaurant takings 210,600
Annual subscriptions 115,400

Payments TZS
Wages of restaurant staff 40,890
Restaurant purchases 100,740
Sports equipment 30,025
Club treasurer’s fee 6,000
Rent and rates 100,800
Light and heat 30,080
General expenses 9,160
Bank charges 900
Sports club manager’s salary 15,360

Additional information:

(1) Balances at: 1 July 2021 30 June 2022

TZS TZS
Stock of restaurant supplies 11,090 6,050
Light and heat accrued 550 690
Rent and rates paid in advance 4,000 -
Rent and rates in arrears - 5,070
Cash in hand 650 650
Cash at bank 30,890 ?
Sports equipment at net book value 119,400 144,700
Creditors for restaurant supplies 6,010 8,050
Subscriptions in arrears 4,850 5,010
Subscriptions paid in advance 3,005 3,010
Accumulated fund 161,315 ?

(2) Rent and rates is to be apportioned 50% to the restaurant.

REQUIRED

Prepare the:

(a) Restaurant Account for the year ended 30 June 2022

(6 marks)
(b) Income and Expenditure Account for the year ended 30 June 2022
(10 marks)
(c) Statement of Financial Position as at 30 June 2022.
(9 marks)

(Total 25 marks)