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In: Accounting

The following is the receipts and payments account for the year ended 31 December 2018: Receipts:...

The following is the receipts and payments account for the year ended 31 December 2018:

Receipts: Payments:
Balance b/f 2040 Bar Purchases 88680
Entrance fees 840 Rent 8320
Subscriptions: 2017 500 Wages 3720
2018 6100 Printing expenses 2560
2019 700 General expenses 1940
Bar Sales 104540 New Equipment 9000
Sales of investments 15000 Balance c/f 15500
129720 129720
(1)Additional information: 01-Jan-18 31-Dec-18
Bar inventory 5440 6300
Owing for bar purchases 6120 7160
Rent due 360 720
Heating and lighting due 320 380
Subscription due 500 800
General expenses paid in advance 100 140

(2) On 31 December 2017 the club held investments which cost $10000. During the year ended 31 December 2018, these were sold for $15000.
(3) Equipment was valued at $6000 on 31 December 2017. On 30 June 2018, the club purchased additional equipment at a cost of $ 10400. Depreciation is to be provided for at the rate of 10% per annum.

(a) Prepare the trading section of the income statement for the year ended 31 December 2018.
(b) Prepare the income and expenditure account for the year ended 31 December 2018.

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ekkarill92 answered 2 months ago
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