Question
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
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:
(a) 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.
(b) 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 above to calculate the membership fees that should be recognised as income in the statement of income and expenditure of Only Supporters Club for the year ended 30 September 20.19:
- A.
Membership fees amount recognised as income is R54 000.
- B.
Membership fees amount recognised as income is R50 280.
- C.
Membership fees amount recognised as income is R57 720.
- D.
Membership fees amount recognised as income is R48 720.
- E.
Membership fees amount recognised as income is R56 720.
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