Paper 3 · June 2008 · club accounts: accumulated fund and income and expenditure
A tennis club's assets and liabilities at 1 January 2001 were: club premises $80,000, furniture and fittings $45,000, motor vehicles $60,000, sports equipment $42,500, stock of refreshments $8,640, subscriptions owing by members $830, rent and rates paid in advance $1,750, bank balance $29,140, water and electricity outstanding $700, subscriptions paid in advance by members $360 and creditors for refreshments $7,250. Calculate the accumulated fund of the club at 1 January 2001.
Model answer
259550
Also accepted: 259,550, $259,550
Explanation
Assets $80,000 + $45,000 + $60,000 + $42,500 + $8,640 + 1,750 + $29,140 = $267,860. Liabilities 360 + $7,250 = $8,310. The accumulated fund is the net assets, $267,860 - $8,310 = $259,550.
Derived from ZIMSEC Accounting 9197/3 Paper 3 (Case Study), June 2008, Q1