The Favourite Book Club was formed several years ago. The subscription amount of $52 per annum has remained unchanged since the club started. All subscriptions are paid by cheque or credit transfer. The treasurer provided the following information. At 1 January 2022 | At 31 December 2022 $ | $ Subscriptions in advance | 260 | 156 Subscriptions in arrears | 468 | 1040 Insurance paid in advance | 348 | 366 Cash at bank | 68 | 114 For the year to 31 December 2022: Receipts Subscriptions received | $5356 Payments Rent paid | $2080 Insurance paid | $732 General expenses paid | $2498 The club had 128 members in 2021 and 120 in 2022. The treasurer is aware that 4 current members will not pay their subscriptions for 2022. She has decided to write these subscriptions off.

Mark scheme

Marking points from the official mark scheme (May/June 2023). The mark or mark type is shown in brackets.

1. [1] Jan 1 Balance b/d (Subscriptions in arrears) $468 (Debit)
2. [1] Dec 31 Income & Expenditure $6240 (Debit) (OF)
3. [1] Dec 31 Balance c/d (Subscriptions in advance) $156 (Debit)
4. [1] Jan 1 Balance b/d (Subscriptions in advance) $260 (Credit)
5. [1] Dec 31 Bank $5356 (Credit)
6. [1] Dec 31 Income and expenditure subscriptions written off $208 (Credit)
7. [1] Dec 31 Balance c/d (Subscriptions in arrears) $1040 (Credit)
8. [1] Jan 1 Balance b/d (Subscriptions in arrears) $1040 (Debit) (OF)
9. [1] Jan 1 Balance b/d (Subscriptions in advance) $156 (Credit) (OF)
10. [1] Subscriptions 6240 (OF)
11. [1] Rent 2080
12. [1] General expenses 2498
13. [1] Insurance (732 + 348 – 366) 714
14. [1] Subscriptions written off 208
15. [1] Surplus for the year 740 (OF)
16. [1] For - increasing subscriptions: Subscriptions have remained unchanged for many years so increase should be expected
17. [1] For - increasing subscriptions: Only requires a small increase to raise $400
18. [1] For - increasing subscriptions: There would be no need to obtain outside funds / loan / loan interest
19. [1] For - increasing subscriptions: May result in the club being run more efficiently (Max 3)
20. [1] Against - increasing subscriptions: Increase in subscriptions may not be popular
21. [1] Against - increasing subscriptions: May result in members leaving the club / join another club
22. [1] Against - increasing subscriptions: Membership is already falling
23. [1] Against - increasing subscriptions: May result in more subscriptions being written off
24. [1] Against - increasing subscriptions: Subscriptions in arrears have increased from 2021 to 2022
25. [1] Against - increasing subscriptions: Could try to raise the money another way, e.g. reduce general expenses / obtain loan / fund-raising (Max 3)
26. [1] Recommendation
27. [1] A summary of the cash book of a club or society usually prepared annually
28. [1] Assets less liabilities of a club/society OR accumulated surpluses less accumulated deficits of a club/society