The accounting records of the Happy Tickers Sports and Social Club are in a mess. You manage to find the following information to help you prepare the accounts for the year to 31 December, 2014.
Notes:
(1) Ownership and all expenses of the motorised roller are agreed to be shared equally with the Carefree Convey- ancers Sports and Social Club which occupies a nearby site. The roller cost a total of ~ 2,000 on January 1, 2010 and had an estimated life of 10 years.
(2) Life subscriptions are brought into income equally over 10 years, in a scheme begun in 2009. Since the scheme began the cost of ~ 200 per person has been constant. Prior to 31 December 2013, 10 life subscriptions had been received.
(3) Four more annual subscriptions of ~ 20 each had been promised relating to 2014, but not yet received. Annual subscriptions promised but unpaid are carried forward for a maximum of 12 months.
(4) New sports equipment is sold to members at cost plus 50%. Used equipment is sold off to members at book valuation. Half the sports equipment bought in the year (all from a cash and carry supplier) has been used within the club, and half made available for sale, new to members. The ‘used equipment at valuation’ figures in the 31 December 2014 Balance Sheet is to remain at ~ 700.
(5) Closing cafe stocks are ~ 850 and ~ 80 is owed to suppliers at 31 December 2014.
Required : (a) Calculate profit on cafe operations and profit on sale of sports equipment; (b) Prepare statement of subscriptions income for 2014; and (c) Prepare Income and Expenditure Account for the year to 31 December, 2014 and Balance Sheet as at 31st December, 2014.