Question
XYZ Club is a non- profit organisation that was started by 160 members on 1 January 20.18. The objective of XYZ Club is to address
XYZ Club is a non- profit organisation that was started by 160 members on 1 January 20.18. The objective of XYZ Club is to address gender-based violence that is faced by South African citizens. The constitution of XYZ Club indicated the following:
Entrance fees to join the club amount to R250 per member and it should be capitalised.
In order to prepare the financial statements for the current financial period ended 31 December 20.19, the bookkeeper presented the following information regarding the finances of the club to members at a meeting held on 31 December 20.19:
Entrance fees:
65 new members joined the club and each member paid their entrance fees of R250.
Which of the following statements are correct with regard to entrance fees paid by the new members in the current financial period?
(a) Entrance fees for the current financial period will form part of the accumulated funds.
(b) The journal entry to record entrance fees would be as follows:
Description | Debit | Credit |
Dr. Bank account | R16 250 |
|
Cr. Membership fee account |
| R16 250 |
(c) The journal entry to record entrance fees would be as follows:
Description | Debit | Credit |
Dr. Membership fee account | R16 250 |
|
Cr. Entrance fee account |
| R16 250 |
(d) The journal entry to record entrance fees would be as follows:
Description | Debit | Credit |
Dr. Bank account | R16 250 |
|
Cr. Entrance fee account |
| R16 250 |
(e) Entrance fee will be shown in the income and expenditure statement as revenue.
Select one:
A.
(c) and (a)
B.
(a), (d) and (e)
C.
(d) and (e)
D.
(a) and (d)
E.
(a) and (b)
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