Question 3

Nada Alam Mens Club provides indoor soccer facilities for members. Apart from that, the club also offers refreshments on cash or credit basis. The ledger balances as at 31.12.2011 were as follow:

	RM DEBIT	RM CREDIT
Life membership fees	48000
Subscription in advance		2000
Subscription in arrears	1200
Ordinary Subscription		24800
Refreshment sales		42000
Refreshment inventory 1.1.2011	7600
Refreshment purchases	24000
Refreshment account receivables	5200
Refreshment account payables		12000
Soccer table	50000
Refreshment wages	6000
Salaries and wages	11280
Sundry expenses	9600
Bank	9320
Accumulated fund		91400

The following is a summary of the assets and liabilities as at 31.12.2010.

ASSETS	RM
Soccer table at Net Book Value	40000
Refreshment inventory	7600
Account receivables- Refreshment	9600
Subscription in arrears	2400
Bank balance	3000
LIABILITIES
Account payables Refreshment	15000
Subscription in advance	3600
Bank overdraft	600
Life membership fees	54000

Additional Information:

1. Refreshment inventory at 31.12.2011 was RM10,200.
2. All Refreshment sales were on credit basis.
3. During the year, life membership scheme was introduced on 1.1.2010. RM60,000 was received during the first year of the scheme. It is club policy to amortize it over a 10 years period.
4. Ordinary subscription transferred to the Income and Expenditure at year end amounted to RM24,800.
5. Depreciation on Soccer table was provided at 10% per annum on net book value.

Required:

1. The Refreshment Accounts Receivable and Account Payable.
2. The Ordinary subscription Account.
3. The Life Membership Subscription Account.
4. The Receipts and Payments Account for the year ended 31 December 2011.
5. Refreshment Trading and Income and Expenditure Account for the year ended 31 December 2011.
6. Explain the differences between the receipts and payments account and the income and expenditure account.