Question 25 of 27

3.0 Points

The following information pertains to the Only Supporters Club:

Balances as at 30 September 2019	R
Membership fees received.	63 240
In arrears membership fees (30 September 2018)	7 440
Membership fees received in advance (30 September 2018).	10 800
Advertising expenses.	8 800
TH fund - (30 September 2019)	96 000

Additional information

The following transactions must be taken into account for the year ended 30 September 2019:

1. During the current year 25 new members joined the club. The entrance fee per member is R600 and the entrance fees received should be capitalised.
2. At year-end in arrears membership fees amounted to R9 000 and membership fees already received for to the next financial year amounted to R21 600. 50% of the in arrears membership fees balance outstanding at the beginning of the financial year should be written off.

Use the information provided to calculate the membership fees that should be recognised as income in the statement of income and expenditure for the year ended 30 September 20.19:

• A. Membership fees amount recognised as income is R56 720.
• B. Membership fees amount recognised as income is R50 280.
• C. Membership fees amount recognised as income is R48 720.
• D. Membership fees amount recognised as income is R57 720.
• E. Membership fees amount recognised as income is R54 000.

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Question 26 of 27

3.0 Points

The following information pertains to All STARS Tennis Club.

Refreshments:
	R
Inventory (31 December 2018).	1 000
Purchases.	10 880
Sales..	36 000
Inventory (31 December 2019).	2 000

The gross profit/loss amount for the small shop for refreshments of All Stars Tennis Club to be shown in the income and expenditure statement for the year ended 31 December 2019, will be ?

• A. gross profit = R18 500
• B. gross profit = R24 120
• C. gross profit = R27 120
• D. gross profit = R36 000
• E. gross profit = R26 120

Question 27 of 27

3.0 Points

On 1 April 20.17 Trak Traders took up an insurance contract with Blue Sky Insurers for 24 months. The insurance policy was effective with immediate effect and stipulated that all premiums for a year (a period of 12 months starts from 1 April each year) are due by 1 April each year.

An extract from the list of balances of Trak Traders at year-end, reflected the following balances:

	28 February 20.19	28 February 20.18
Premiums paid during the year ended	*R17 472	*R15 996

*payments for 12 months *payments for 12 months

The amount for insurance premiums and the short-term adjustment to be disclosed in the financial statements of Trak Traders will be

• A.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19	Statement of financial position as at 28 February 20.19
R18 805	R1 333

• B.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19	Statement of financial position as at 28 February 20.19
R16 016	R1 456

• C.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19	Statement of financial position as at 28 February 20.19
R17 472	R2 789

• D.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19	Statement of financial position as at 28 February 20.19
R17 349	R1 456

• E.

Statement of profit or loss and other comprehensive income for the year ended 28 February 20.19	Statement of financial position as at 28 February 20.19
R17 472	R1 333