The Milham Theatre Club has been in existence for a number of years. Members pay an annual subscription of £15 which entitles them to join trips to professional productions at a reduced rate.

On 1 February 20X7 the Club’s assets and liabilities were as follows:

Cash in hand £80, Bank balance (overdrawn) £180, Subscriptions in arrears £150, Savings account with local building society £1,950, Amount owing for coach hire £60.

Required:

(a) A detailed calculation of the Milham Theatre Club’s accumulated fund at 1 February 20X7.

The Club’s treasurer was able to present the following information at 31 January 20X8:

On 31 January 20X8 the club committee decided to write off any arrears of subscriptions for the year ended 31 January 20X7; the membership secretary reported that £75 is due for subscriptions for the year ended 31 January 20X8.

The treasurer has calculated that the full amount of interest receivable on the building society account for the year ended 31 January 20X8 is £155.

The club committee has decided that the gift should be capitalised.

Required:

(b) An account showing the surplus or deficit made by the Milham Theatre Club on theatre trips.

(c) An income and expenditure account for the Milham Theatre Club for the year ended 31 January 20X8.

(d) An extract from the Milham Theatre Club’s balance sheet as at 31 January 20X8, showing the accumulated fund and current liability sections only. 

The club committee have been concerned by the fact that the club’s income has been steadily declining over recent years.

Required:

(e) Advice for the committee on four ways in which they could improve the club’s income.

Transcribed Image Text:

Receipts and Payments Accounts for year ended 31 January 20X8 Opening balances Cash in hand Cash at bank (overdrawn)* Receipts Subscriptions for year ended 31 January 20X7 for year ended 31 January 20X8 for year ended 31 January 20X9 Gift from member Interest on building society account Theatre outings receipts from members for theatre tickets receipts from members for coach travel £ 80 (180) 120 1,620 165 1,000 140 2,720 1,240 E (100) 7,005 6,905