QUESTION 1
The treasurer of the Squash Club prepared the following Receipts and Payments Account for the year ended 31 May 2007:
Receipts and Payments Account £ £
Balance at bank 4,923 Grounds staff wages 219,261
Cash in hand 171 Rent 158,400
Disposal of equip at book value 4,707 New equipment 166,050
Subscriptions: Insurance 6,102
For year ended 31 May 2006 7,370 Sundry expenses 12,618
For year ended 31 May 2007 487,980 Refreshments supplies 217,392For year ended 31 May 2008 11,160 Refreshments staff wages 55,851
Refreshments sales 369,135 Cash in Hand 324
Balance at Bank 59,448
895,446 895,446
31 May 2006 31 May 2007
£ £
Refreshments stocks 13,140 17,415
Subscriptions in arrears 18,450 24,255
Equipment at book value 403,200 531,900
Rent owing - 22,995
Rent prepaid 12,600 -
Creditors for refreshment supplies 4,545 17,754
Refreshment staff wages owing - 2,634
The subscriptions in arrears at 31 May 2006 have not been received and are to be written off as irrecoverable.
One third of the depreciation for the year is to be charged to the refreshments account.
REQUIRED
For the Squash Club:
(a) Prepare the Refreshments Trading Account for the year ended 31 May 2007. (8 marks)
(b) Prepare the Income and Expenditure Account for the year ended 31 May 2007. (9 marks)
(c) Calculate the opening Accumulated Fund and prepare the Balance Sheet at 31 May 2007. (8 marks)(Total 25 marks) 
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