Reference no: EM132836954
Question - The Hello Fitness Club was formed on 1 January 2019. The club provides sports facilities for members to use. In addition the club also sells sportswear to members. No inventory is held as all goods are bought and sold by order, on a cash basis.
The treasurer provided the following information on 1 January 2020:
Sports equipment (at cost) 22,000
Accumulated depreciation- Sports equipment 4,400
Subscriptions in arrears 600
Cash 610
Prepaid insurance 100
Bank loan (repayable 2020) 7,000
Accumulated fund ?
The receipts and payments account for the year ended 31 December 2020 were as follows:
Receipts: RM Payments: RM
Cash balance at 1/1/2020 610
Utilities bills 2,200
Subscriptions 12,540
Sports equipment 8,000
Sale of sportswear 3,510
Purchase of sportswear 2,410
Locker rent 2,000
Insurance expense 1,100
Receipts from open day 4,180
General expenses 2,640
Open day expenses 3,450
Rent of sports ground 1,800
Cash balance at 31/12/2020 1,240
22,840 22,840
The following information was available at 31 December 2020:
1. Subscriptions owing by members amounted to RM240 and subscriptions paid in advance by members amounted to RM180.
2. Loan interest at 5% per year was still outstanding.
3. Utilities accrued amounted to RM300.
4. The equipment is depreciated at the rate of 20% per year based on the cost of equipment held at the end of each financial year.
Required -
a) Determine the club's accumulated fund on 1 January 2020.
b) Prepare the income and expenditure account for the year ended 31 December 2020.
c) Prepare the statement of financial position as at 31 December 2020.
d) Differentiate between a non-profit organization and a corporation.