Shannon Bowling Club.

Horowhenua Chronicle, 28 August 1912, Page 3

Shannon Bowling Club.

ITS ACCOUNTS CRITICISED. From a recent issue of The Mercantile Gazette:—The annual accounts of the Shannon Bowling and Lawn Tenuis Company, Ltd., have boon forwarded to us for criticism. It is not thought necessary to pub-" lish the accounts in full, aa the points that call for comment can be sufficiently dealt with without the presentation of the accounts. On the whole the accounts are in good form, and reflect credit on those responsible for them. One defect is, the existence of an error to which we have repeatedly called attention, namely, that the result of the transactions for tho year is obscured by tho balance of previous profit and loss accounts being introduced as (the opening balance of the profit and loss account for the year. As a matter of fact, there has been an excess of revenue over expenditure of £7 odd for the year Covered by the accounts, whereas tho closing balance of the accounts would appear to indicate a deficiency of £12 odd. - The point to which our attention was specially called, and on which a question was asked by our correspondent, is in connection with shares forfeited. An amount of £4 has been credited to profit and loss account under the heading "shares forfeited," and the statement of capital in the balance-sheet indicates that 11 shares have been forfeited. The amount credited to profit and loss account is obviously the amount paid-up on these shares, and ,as they have not been re-ismicd, it is quite wrong to credit the amount to profit and loss account. Until re-issue this amount should appear in a forfeited shares reserve account, and no part of it oan be available as profit under any circumstances until tho shares have been re-issued, and it is .known that such part so appropriated as profit is not required to make up a discount on the reissue. Even after the shares have j been re-issued, and a surplus is found to be thus available, it does not follow that the amount can be ' placed to profit and loss account; whether or not it can depends on the provisions of tho articles of association.