Question

The Eastern Music Club produced the following receipts and payments summary for the year ended 31 March 2019.

Receipts: $
Subscriptions 30 000
Sales of refreshments 50 000
Loan from bank 30 000
Income from concerts 116 800
Sale of surplus equipment 30 000

Payments:
Balance, 1 April 2018 12 000
Purchase of new equipment 10 000
Hire of hall for concerts 27 000
Printing 14 000
Equipment maintenance and repairs 8 000
Purchases of refreshments 23 000
Salaries 45 000
Cost of concerts 83 500
Sundry expenses 760
Sponsorship from banks 1 000
Balance, 31 March 2019 ?

Additional information

31 March 2018 31 March 2019
$ $
Salaries in arrears 2 800   1 600
Subscriptions owing 1 600 2 600
Subscriptions prepaid 1 000 400

Printing accrued 2 600 2 800
Equipment (cost $200000)at NBV 160 000 ?
Food and drink inventory 15 400 13 200

The bank loan was received on 1 July 2018. Interest is charged at 12% per annum. No
Interest had been paid by the year end.
The equipment sold was purchased on 1 June 2017 and had a NBV of $32 000.
Depreciation is provided at 20% on cost for equipment in use at the year end.

REQUIRED
(a) Prepare the trading section of the income statement for the year ended 31 March 2019.
(b) Prepare the income and expenditure account of the Eastern Music Society for the year ended 31 March 2019.

Answer 1