Reference no: EM132997704

Question - A Club collects annual subscriptions of K20 from each member. It is club policy to accrue subscriptions owing at the end of each year and also to adjust for subscriptions received in advance. It is also club policy not to accept part-payments of subscriptions from any member.

On 1 January 2002, members owed K360 for 2001. On 31 December 2001, members paid K80 for the year 2002. During the year 2002 the club received cash for subscriptions amounting to K7 420; of which K6 920 was for 2002 and K140 for 2003 while the outstanding subscriptions at 31 December 2001 were also fully paid. At 31 December2002, some members had not paid their 2002 subscriptions amounting to K500.

i. Determine the amount of subscriptions to be charged to the Income and Expenditure account of the club for the year 2002.

ii. How many members had prepaid their subscriptions at the end of 2001?

iii. How many members fully paid their subscriptions during the year under review?

iv. How many members have so far paid their subscriptions for 2003?

v. How many members owed the club at the beginning of the financial year under review?

vi. How many members paid what was fully charged to the Income and Expenditure account?