Question 02

Fantasy Football club is a professional football club in Oman operating with 227 members. Given below is the trial balance as of 31^st Dec 2020 of the Fantasy Football club.

	Dr	Cr
	OMR	OMR
Sports Equipment (NBV)	67,000
Club Premises	189,600
Subscription received		45,400
Sales of Party tickets		2,000
Wages of restaurant staff	7,200
Furniture and fittings (NBV)	44,000
Rates and insurance	8,650
General expenses	4,500
Party expenses	750
Accumulated fund 1st Jan 2020		256,940
Donation received		5,400
Telephone and Postage	960
Bank	2,740
Restaurant purchases	13,800
Creditors for restaurant supplies		2,460
Restaurant sales		29,500
Restaurant stock as at 1st January 2020	2,500
	341,700	341,700

The following additional information is also available:

1. As of 31^st Dec 2020, the Fantasy Club Restaurant had OMR 1750 worth of closing stock
2. The depreciation on the fixed asset for the year ended 31^st Dec 2020 is as follows;

	OMR
Sports Equipment	10,050
Furniture and Fittings.	2,200

Requirement:

1. Prepare the Income statement for the year ended 31st Dec 2020 for Fantasy Football Club Restaurant (6 Marks)

2. Prepare the Income and Expenditure Account for the year ended 31st Dec 2020 for Fantasy Football Club. (6 Marks)

3. Prepare the Statement of Financial Position as at 31st Dec 2020 for Fantasy Football Club.

(6 Marks)

4. Critically discuss the differences between non-profit organisation and profit-making organisation focusing on preparation of financial statements for external users. (7 marks)

(Total 25 Marks)