Receipts & Payments and Income & Expenditure Accounts

A Receipts and Payments Account is . . .

• a summary of revenues and expenses for a period.

• a summary of cash and bank transactions for a period.

• a summary of purchases and sales for a period.

• None of the above.

The balancing figure in an entity's Receipts and Payments Account for an accounting period is . . .

• the net profit earned or loss incurred by the entity for the period.

• the sum of its cash and bank balances at the end of the period.

• the excess of its income over its expenditure for the period.

• the excess of its expenditure over its income for the period.

If a club operates a bar at a profit, this profit should be accounted for in the club's income and expenditure account by . . .

• including sales and expenses relating to the bar separately.

• including it in the income section of the account.

• including receipts and payments relating to the bar separately.

• including any surplus of receipts over payments in the account.

A club's accumulated fund is . . .

• the amount (if any) by which its assets exceed its liabilities.

• the amount of its liabilities.

• the aggregate depreciation on its fixed assets.

• the same as its bank balance.

In the accounts of a club, which of the following is an asset ?

• Subscriptions receivable by the club.

• Subscriptions received in advance by the club.

• Subscriptions received by the club.

• None of the above.

A club which has fifty members charges an annual membership subscription of £20. At the beginning of the year, five members had paid their subscription in advance and four were in arrears with their subscriptions. At the end of the year, three members were in arrears with their subscription and two members had paid the following year's subscription. The club's subscription income for the year was:

• £960

• £1,000

• £1,020

• £1,040

A club which has fifty members charges an annual membership subscription of £20. At the beginning of the year, five members had paid their subscription in advance and four were in arrears with their subscriptions. At the end of the year, three members were in arrears with their subscription and two members had paid the following year's subscription. The amount received by the club during the year in respect of subscriptions was:

• £960

• £1,000

• £1,020

• £1,040

If some members of a club have not paid their annual subscription by the end of the club's financial year and the club decides not to include the subscriptions due as revenue for the year, the club is applying . . .

• the consistency concept.

• the going concern concept.

• the prudence concept.

• the entity concept.

A credit balance brought down on a club's life subscriptions account represents . . .

• a long-term loan to life members.

• life subscriptions received by the club but not yet credited in its income and expenditure account.

• subscriptions due from life members.

• revenue for the current year.