The treasurer of the Grandford Sports Club provided the following information at the end of the club's most recently completed financial year ended 31 March 2015. 

At 1 April 2014 the club's assets and liabilities included the following.

Additional information: 

• The annual member's subscription is $50. Subscriptions have been at this level for some years. At 31 March 2015, 14 members had not paid their subscription for the year ended on that date; four members had paid their subscription in advance for the year ended 31 March 2016. The treasurer had not been able to collect subscriptions due for the year ended 31 March 2014 from two members and it had been decided to write these amounts off. 

• The club's policy is to treat 12.5 per cent of the life membership fund as income for the year. 

• At 31 March 2015 suppliers of café refreshments were owed $480 and secretary's honorarium $120 was due but unpaid. 

• Some sports equipment with a book value of $800 had been sold during the year. At 31 March 2015 the treasurer valued sports equipment at $22 900. 

• Property is to be depreciated by 2 per cent per annum using the reducing-balance method. 

• Cafe refreshments are always sold with a mark-up of 20 per cent. At 31 March 2015 café refreshments inventory was valued at $720. It is believed that some cash takings may have been stolen from the cafe during the year resulting in an uninsured loss. 

a. Prepare a subscriptions account showing the income from members' annual subscriptions for the year ended 31 March 2015.

b. Prepare a cafe refreshments account for the year ended 31 March 2015. State the amount of cash takings stolen.

c. Prepare an income and expenditure account for the year ended 31 March 2015. 

The club committee recently reviewed the receipts and payments account and income and expenditure account for the year ended 31 March 2015. One committee member expressed concern and suggested immediate action should be taken to increase the club's income, including an increase in the annual membership subscription. Another committee member, however, was of the opinion that there was no need for any concern. 

• Discuss whether there is any need for immediate action to increase the club's income. Take account of the information shown in the receipts and payments account and income and expenditure account for the year ended 31 March 2015.

Transcribed Image Text:

Clubhouse and sports ground at book value 90 000 Sports equipment at bock value 17 400 Inventory: café refreshments 680 Members' subscriptions due 450 received in advance 150 Amount due to suppliers of refreshments 80 Life membership fund 12 800 Interest-free loans from members 4 000 Receipts and payments account for the year ended 31 March 2015 2$ Balance at bank 1 Aporil 2014 2 280 Receipts Life membership fund 4 400 Members' subscriptions 7 550 Disposal of sports equipment 240 Café takings 2970 Sports competition ticket sales 2 590 17 750 20 030 Рayтents Secretary's honorarium 820 Suppliers of refreshments for café 2240 Repayment of interest-free members' loans 2200 Additional sports equipment 7 900 Sports competition expenses 1 330 Sports club repairs 5330 Travel expenses 950 (20 770) Balance at bank 31 March 2015 overdrawn 740