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 2012 the Club’s assets and liabilities were as follows: Cash in hand £80, Bank balance (overdrawn) £180, Subscriptions in arrears £150, Savings account £1,950, Amount owing for coach hire £60. Required:

(a) A detailed calculation of the Milham Theatre Club’s accumulated fund at 1 February 2012.

The Club’s treasurer was able to present the following information at 31 January 2013:

l On 31 January 2013 the club committee decided to write off any arrears of subscriptions for the year ended 31 January 2012; the membership secretary reported that £75 is due for subscriptions for the year ended 31 January 2013. l The treasurer has calculated that the full amount of interest receivable on the savings account for the year ended 31 January 2013 is £155. l 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 ending 31 January 2013.

(d) An extract from the Milham Theatre Club’s statement of financial position as at 31 January 2013, 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.

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Receipts and Payments Accounts for year ended 31 January 2013 Opening balances Cash in hand Cash at bank (overdrawn)* Receipts Subscriptions For year ended 31 January 2012 For year ended 31 January 2013 For year ended 31 January 2014 Gift from member Interest on savings account Theatre outings Receipts from members for theatre tickets Receipts from members for coach travel Payments Transfer to savings account Theatre trips Tickets Coach hire Secretarial and administrative expenses Closing balances Cash in hand Cash at bank 80 (180) 120 1,620 165 1,000 140 2,720 1,240 1,210 3,120 1,540 55 35 945 (100) 7,005 6,905 (5,925) 980 980