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MBA 501 SEPT DEC 2021 WBA QUESTION ONE The assets and liabilities of Railways Tennis Club as at 1 April 2020 and the 31 March

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MBA 501 SEPT DEC 2021 WBA QUESTION ONE The assets and liabilities of Railways Tennis Club as at 1 April 2020 and the 31 March 2021 include the following: 1 April 2020 31 March 2021 Ksh Ksh Courts and clubhouse 324,410 324,41 Fixtures and fittings -cost 21,110 ? Fixtures and fittings - accumulated 4,150 ? 5% long term loan 175,000 2 Bar inventory 18,410 20,70 Bar payables 13,540 14,74 Insurance prepaid 3,150 2,750 Annual subscriptions in arrears 47,960 51,33 Annual subscriptions in advance 3,750 4,970 Bar wages due 2,875 3,150 Life subscriptions fund 120,000 ? The bank account is as follows: Bank Account ksh Ksh Members subscriptions (all annual) 94.410 Balance bd (14/2020) 32,100 Bank interest 107 Advertising for dinner dance 513 Bar receipts 121.150 General repairs & expenses 29.140 Annual dinner dance ticket sales 17,630 Payments to bar payables $1,760 Fees from non-members 9,450 Payments for bar wages 45.350 Loan interest 7,000 Power & Internet 6,190 Repayment of loan principle (31/3/2021) 10.500 Fixtures and fittings 3,150 Insurance 18,120 Catering for dinner dancer 4,175 General expenses for dinner dance 2.220 Bank charges 360 Balanced 32.167 242,747 202244 Balance b/d (1/4/21) 32,167 Additional Information The life subscription fund relates to a once of deal that was offered to members in 2018 to help part finance an extension to the clubhouse. The value of the life membership fund originally was Ksh 150,000 and is being credited to the income and expenditure account over 10 years, Fixtures and fittings are being depreciated at 10% pa on the straight line method. During the financial year Ksh3,150 of additional fixtures and fittings were purchased. The club's depreciation policy is to charge a full year of depreciation in the year of purchase and none in the year of sale. The courts and clubhouse are not depreciated. You are required to: i. Calculate the accumulated fund as at 1 April 2020. 3 Marks ii. Prepare the Bar Trading account for the year ended 31 March 2021 5 Marks ii. Calculate the profit loss of the dinner dance 2 Marks iv. Prepare the Income and. Expenditure Account for the year ended 31 March 2021 20 Marks Total 20 Marks

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