Paper 2 · November 2013 · Incomplete Records

A club received $6 000 in subscriptions during the year. Subscriptions in arrear were $1 920 at the start of the year and nil at the end, and subscriptions in advance were $270 at the start and $360 at the end. Calculate the subscriptions income for the year.

Model answer

3990

Also accepted: 3 990, $3 990

Explanation

Start from the $6 000 received. The $1 920 of arrears collected was earned last year, so take it out, while the $270 received in advance last year is earned this year, so add it. The $360 received in advance this year is not yet earned, so take it out: $6 000 - $1 920 +

270 -

360 = $3 990.

Derived from ZIMSEC Accounting 9197/2 Paper 2, November 2013, Q1

View this paper's sittings and topics→

More questions from this paper

How does the accounting treatment of a bad debt differ from that of a doubtful debt?
A club's receipts and payments account for the year ended 31 December 2013 shows a debit balance of $79 978. A subscription of $60 that had been credited in the bank account was not entered in the receipts and payments account, and a direct debit of $245 for stationery was also omitted. Calculate the updated cash and bank balance at 31 December 2013.
A trader banked $379 360 received from trade receivables during the year ended 31 December 2014 and used a further $96 300 of receipts for cash payments without banking it. Trade receivables were $90 310 at 1 January 2014 and $86 240 at 31 December 2014. Calculate the sales for the year.
P. Moyo, a sole trader, had the following at 1 January 2015: premises at cost $80 000, fixtures and fittings at valuation $8 000, motor vehicles at net book value $7 000, inventory $22 000, trade receivables $13 750, rent prepaid $600, petty cash $500, bank$ 16 500, trade payables $16 500 and wages accrued $1 000. Calculate his capital at 1 January 2015.
A bookkeeper posts the cost of a new delivery van to the motor expenses account. The trial balance still agrees. What kind of error is this?

Get the full paper, not just one question

Danho has every sitting for this paper, with your progress tracked question by question, offline.

Get it on Google Play Download on the App Store