The treasurer of a club has given you the following account of its activities during the year ended 30 June 20X1.

Additional information
1. The freehold building, owned and occupied by the club, was purchased for £6,000 many years ago.
2. On 1 July 20W5 the club acquired six billiard tables for which they paid £1,200, and it is considered that the tables have a life of 12 years.
3. The bar inventory at 1 July 20X0 was £150 and at 30 June 20X1 is £180.
4. Annual subscriptions outstanding from members at 30 June 20X1 amounted to £10.
5. On 1 July 20X0 there were 25 life members who had paid subscriptions of £16 each. During the year ended 30 June 20X1 three of these members had died.

Required
Prepare an income and expenditure account and statement of financial position showing clearly how you have treated the subscriptions of life members and the prize fund.

Transcribed Image Text:

Receipts Bank balance at 1/7/X0 (including £75 received during the year ended 30/6/X1 on the prize fund investments) Annual subscriptions (including £20 relating to previous year) Life membership subscriptions (5× £16) Sundry lettings Bar receipts Receipts for billiards Gifts from members £ 390 340 80 180 4,500 275 3,500 Income from £1,500 5 per cent defence 75 bonds allocated specifically for a prize fund 9,430 Payments Additional billiard table with accessories bought 1/7/X0 Repairs to billiard tables Purchases for bar Bar wages and expenses Rates Lighting and heating Cleaning and laundry Sundry expenses Prizes awarded for previous year from income available at 1/7/X0 Repayment of 5 per cent mortgage on 30/6/X1 with interest for two years Bank balance at 30/6/X1 £ 300 50 3,680 400 140 72 138 80 75 4,400 95 9,430