exam pack from 2015 to 2017.pdf

85 members x r30 fee per member per month x 12 months

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85 members x R30 (fee per member per month) x 12 (months in a year) R30 600 C2: ACCRUED INCOME R Membership fees for 2012 (C1) Paid in 2011 Paid in 2012 30 600 (142) (30 380) Accrued membership fees 78 NOTES ¾ The prepaid income as at 31 December 2011 (last year) is income for this year received during the previous period. This should be added to current year`s income by crediting the membership fees account. ¾ The accrued income as at 31 December 2011 (last year) will be received this year so it is an asset (receivables owing) which should be debited in the membership fees account. ¾ In this case the amount to be transferred to the income and expenditure account should be equal to the actual expenditure for the year (see C1) ¾ The irrecoverable credit losses are credited to the membership fees account to cancel the accrual initially recorded on the debit side. ¾ The accrued income at the end of the year should be credited to the membership fess account to increase the income for the current since though this amount was never received, it accrues in the current period (see C2 for calculations) ¾ The prepaid income at the end of the year should be debited to the membership fees account to reduce income as it represents income received this year but belonging to future periods. 172 | P a g e
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FAC1502 2014 4.4 INCOME AND EXPENDITURE STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2012 R INCOMES Membership fees (see 4.1) Visitors fees Donations Interest income (12% x R26 000) 42 980 30 600 3 770 5 490 3 120 EXPENSES Rates and Taxes Refreshments (R1 900 – R92) Stationery Golf balls (R1 120 + R6 420 – R240) Affiliation fees Honorarium Wages (R3 960 – R84 + R360) Maintenance Rental: Golf Courts (R510 X 12) Depreciation: Equipment [20% x (R32 000 – R11 200) + R3 400 x 20% x 3/12 (34 116) 4 452 1 808 1 622 7 300 220 2 240 4 236 1 788 6 120 4 330 SURPLUS 8 864 NOTES ¾ The interest on fixed deposit is income earned during the current period and it should be added to income. ¾ Entrance fees are to be capitalised, that is they are not to be included under income but they are added to the accumulated fund in the statement of financial position. ¾ The inventory of refreshments is deducted as these refreshments will only be used next year. ¾ Inventory of Golf balls at 31 December 2011 should be added to expenses for the current year. Although the payment for these balls was made last year, they are to be used in the current year. Inventory of Golf balls at 31 December 2012 is deducted from current year`s expenditure. This is because, although they were paid for this year, they will only be used next year. ¾ Accrued wages for last year are deducted from this year`s expenditure because they are in the payments but they belong to the previous period. The accrued wages at the end of the year (R360) is added to the expenditure for the current year. This is because the services applicable to these wages were undertaken during the current year.
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