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Accounts of clubs and societies

Total questions: 20

Worksheet time: 12mins

Name
Class
Date
1.

What is similar to accumulated fund account?

a)

Cash account

b)

Clubs account

c)

Capital account

d)

Cash book

2.

When revenue expenditure is more than revenue receipts, it is called _________

a)

deficit

b)

losses

c)

profits

d)

surplus

3.

Which of the following is capital receipts?

a)

Purchase of machinery

b)

Building funds

c)

Subscriptions

d)

Rent paid

4.

What does balance c/d on the debit side of subscription account represents?

a)

Bank

b)

Income and Expenditure

c)

Accrued

d)

Prepaid

5.

The Receipts and payments account contains

a)

Capital receipts and payments only

b)

Revenue receipts and payments only

c)

Petty receipts and payments only

d)

All receipts and payments

6.

At the end of the financial year, a club has its outstanding subscription.

Where will this item appear in the statement of financial position?

a)

Current asset

b)

Current liability

c)

Non current asset

d)

Non current liability

7.

Which statement about a receipts and payments account is incorrect?

a)

it includes amounts prepaid at the end of the year

b)

it shows surplus for the year

c)

non-monetary items are excluded

d)

the balance represents cash and bank balance

8.

Hill tennis club received $32 000 in subscriptions during the year. At the year end subscriptions of $350 were owed by members and $450 had been paid in advance for the next year.

How much was transferred to the income and expenditure account for subscriptions?

a)

$31 200

b)

$31 900

c)

$32 100

d)

$32 800

9.

A club provided the following information for a year.

$

Receipts 21 600

Payments 20 000

Depreciation charged for the year 1 250

Accumulated fund at the year end 15 800


What was the accumulated fund at the start of the year?

a)

$12 950

b)

$14 200

c)

$ 15 450

d)

$16 150

10.

Leroy has an engineering business. On 31 May he received an invoice from AB Machines showing the following:


cost of replacement parts for machine

cost of repairs to machine

cost of machine

cost of installation of machine


Which costs are capital expenditure in Leroy's books?

a)

machine, installation

b)

machine only

c)

replacement parts, machine

d)

replacement parts, repairs, installation

11.

A club's financial year ends on 31 July. During the year ended 31 July 2018 the following subscriptions were received.

subscriptions for the year ended 31 July 2017 $50

subscriptions for the year ended 31 July 2018 $3400

subscriptions for the year ended 31 July 2019 $20


How much would be included in the receipts and payments account for the year ended 31 July 2018

a)

$3400

b)

$3420

c)

$3450

d)

$3470

12.

After the preparation of the financial statements of a sports club it was found that no adjustment had been made for subscriptions received for the following financial year.


How will correcting this error affect the financial statements?

a)

Income Expenditure - decrease income

Statement of financial position - increase current assets

b)

Income Expenditure - decrease income

Statement of financial position - increase current liabilities

c)

Income Expenditure - increase income

Statement of financial position - increase current assets

d)

Income Expenditure - increase income

Statement of financial position - increase current liabilities

13.

What will not appear in the financial statements of a club?

a)

accumulated fund

b)

drawings

c)

prepaid subscriptions

d)

surplus or of income over expenditure

14.

A sports club provided the following information.

Subscriptions received during the year $12000

Subscriptions owing at the start of the year $ 1200

Subscriptions owing at the end of the year $ 800


What was the amount of subscriptions shown in the income and expenditure account

a)

$11600

b)

$12400

c)

$12800

d)

$13200

15.

The statement of financial position of a posts club included the following.


subscriptions in advance $100

subscription in arrears $130

bank $790 debit

inventory of refreshments $320

amounts owing to suppliers $200


What was the total current liabilities?

a)

$300

b)

$330

c)

$1090

d)

$1240

16.

What will be treated as capital expenditure?

a)

the annual depreciation on office premises

b)

the cost of building an office extension

c)

the cost of repairing office equipment

d)

the purchase of a new computer for resale

17.

A sports club formed on1 September 2019.

what may appear in the receipts and payments account for the year ended 31 August 2020?

a)

closing bank balance

b)

closing inventory of club shop

c)

depreciation of sports equipment

d)

subscriptions in arrears

18.

Which statements about capital expenditure are correct?

1 It is money spent day to day business operations

2 It is money spent on purchasing non-current assets

3 It is recorded in the statement of financial position

4 It includes expenses relating to non-current assets

a)

1 and 3

b)

1 and 4

c)

2 and 3

d)

2 and 4

19.

Which of the following is a capital receipt?

a)

Rent received

b)

Installation of air-conditioning

c)

Building funds

d)

Bar wages

20.

The amount of revenue expenditure is treated as revenue receipt. What is the effect of this error?

a)

revenue expenditure increases

b)

revenue receipt decreases

c)

surplus decreases

d)

surplus increases