a) Prepare the trading account of Damai Golf Club for the year ended 31 December 2021.b) Prepare the statement of income and expenditure of Damai Golf Club for the year ended 31 December 2021. c) Prepare the statement of financial position of Damai Golf Club as at 31 December 2021. d) Briefly explain the accounting treatment for the subscrption fee in arrears.e) Explain TWO (2) differences between a non-profit organization and a corporation. Damai Golf Club commenced its operation on 1 January 2020. A year after its operation, theclub's treasurer has presented the following information:1.Damai Golf Club' books had the following balances on 1 January 2021.AccountsRM|Golf Equipment (at cost)| Accumulated depreciation- Golf equipmentCash48,0008,40025,68116,382Loan2. The Receipts and Payments Book during the year ended 31 December 2021.ReceiptsPayments25,681 Purchase of t-shirts22,500 Salaries expense40,300 Golf Equipment10,400 General expenses5,200 Rent expenseRMRM6,65018,60012,5005,2508,16052,921104,081Balance b/dLife membership feesAnnual subscriptionsSales of t-shirtsDonationCash balance at 31/12/2021104,081The following information are to be taken into account:1. Annual subscriptions paid in advance by members at 31 December 2021 amounted toRM4,650.2. The club purchased 250 t-shirts printed with its own design. 70 of these t-shirts remainedunsold at 31 December 2021.3.The equipment is depreciated at the rate of 10% per year based on the cost of equipmentheld at the end of each financial year.4. A life membership scheme was introduced on 1 February 2021, and its fee is to beapportioned over a five-year period.

Hi student Since there are multiple subparts, we will answer only first three subparts.

Answered: a) Prepare the trading account of Damai…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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a) Prepare the trading account of Damai Golf Club for the year ended 31 December 2021. b) Prepare the statement of income and expenditure of Damai Golf Club for the year ended 31 December 2021. c) Prepare the statement of financial position of Damai Golf Club as at 31 December 2021. d) Briefly explain the accounting treatment for the subscrption fee in arrears. e) Explain TWO (2) differences between a non-profit organization and a corporation.

Damai Golf Club commenced its operation on 1 January 2020. A year after its operation, the
club's treasurer has presented the following information:
1.
Damai Golf Club' books had the following balances on 1 January 2021.
Accounts
RM
|Golf Equipment (at cost)
| Accumulated depreciation- Golf equipment
Cash
48,000
8,400
25,681
16,382
Loan
2. The Receipts and Payments Book during the year ended 31 December 2021.
Receipts
Payments
25,681 Purchase of t-shirts
22,500 Salaries expense
40,300 Golf Equipment
10,400 General expenses
5,200 Rent expense
RM
RM
6,650
18,600
12,500
5,250
8,160
52,921
104,081
Balance b/d
Life membership fees
Annual subscriptions
Sales of t-shirts
Donation
Cash balance at 31/12/2021
104,081
The following information are to be taken into account:
1. Annual subscriptions paid in advance by members at 31 December 2021 amounted to
RM4,650.
2. The club purchased 250 t-shirts printed with its own design. 70 of these t-shirts remained
unsold at 31 December 2021.
3.
The equipment is depreciated at the rate of 10% per year based on the cost of equipment
held at the end of each financial year.
4. A life membership scheme was introduced on 1 February 2021, and its fee is to be
apportioned over a five-year period.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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