Question

QUESTION 1
The trial balance of The Parker Exclusive Mens Clubs at 31th May 2020 is as follows
		GHS
Accumulated fund (1/06/2019)		48002400
Massage Palour inventory at beginning (1/06/2019)		9153000
Massage Palour Purchases		17221200
Building (Cost)		43459800
Equipment (Cost)		5424000
Furniture and fittings (Cost)		3390000
Subscriptions		4068000
Affiliation Fees		508500
Savings Account		11526000
Venue of the "Weekend in Paradise Trip"		237300
Executive Mens Club Entrance fees		406800
Massuer's Wages and Salaries		1695000
Accumulated Depreciation	Building	17383920
	Equipment	1356000
	Furniture and Fittings	339000
Salaries		1627200
Rent		650880
"Weekend in Paradise Trip" expenses		406800
Administrative expenses		1179720
Interest on Savings account		644100
Sale of "Weekend in Paradise Trip" tickets		5152800
Bank account (Current)		8475000
Donation for "Weekend in Paradise Trip"		1254300
Revenue from Massage Palour		25764000
Life membership fees		1254300
Utilities		671220
		211251240
Additional Information
1. Massage Palour inventory (31st May 2020)		1830600
2. Subscription paid in advance by member for the year 2020/2021		813600
3. Depreciation : Building 2% per annum, Equipment 25% Furniture and fittings10% per annum
4. Interest on saving includes an amount from the 2018/2019 year		33900
5. Affiliation fees was paid for the next 3 years on 1 June 2019
6. Utilities were prepaid at the end of the year		94920
7. Salaries were accrued at the end at the end of the year		135600
8. Parker Exclusive Mens Club organised a "Weekend in Paradise Trip" for its members during the year
9. The Parker Exclusive Mens Club is affiliated to the International Association of Executive Clubs
REQUIRED:
1. Prepare an Income and Expenditure Statement and a Statement of Financial Position for the 2019/2020 Financial year 2. Provide answers for the following
Profit or loss from Massage Palour Profit or loss from "Weekend in Paradise Trip" Subscription in the Income and expenditure Account Executive mens club entrance fees Interest on savings Affiliation fees Salaries Rent Administrative expenses Utilities Depreciation for Building Depreciation for Equipment Depreciation for Furniture and Fittings Surplus or Deficit for the year Net Book Value of Buildings Net Book Value of Equipment Net Book Value of Fixture and Fittings Savings Account Massage Palour Inventory Bank Current Account Total Prepayment Total Accruals Total Assets Total Current liabilities Total Long Term Liabilities Closing balance of Accumulated Fund

Answer 1

INCOME AND EXPENDITURE OF PARKER EXCLUSIVE MENS CLUB
FOR THE YEAR ENDED 31 MAY 2020
PARTICULARS		AMOUNT	PARTICULARS		AMOUNT
TO OPENING INVENTORY		9153000	REVENUE FROM MASSAGE PALOUR		25764000
TO MASSAGE PALOUR PURCHASES		17221200	BY SUBSCRIPTIONS	4068000
To AFFLIATION FEES	508500		Less:- Advance subscriptions for 2020-21	813600	3254400
LESS:- ADVANCE FEES PAID	339000	169500	BY CLUB ENTRNACE FEES		406800
		237300	BY INTEREST ON SAVING ACCOUNT	644100
TO TRIP EXPENSES		406800	LESS:- PREVIOUS PERIOD INTEREST	0	644100
TO MASSUR WAGES & SALARIES		1695000	BY SALES OF TRIP TICKETS		5152800
TO SALARIES	1627200		BY DONATION FOR WEEKEND TRIP		1254300
ADD:- ACCURED SALARIES	135600	1762800	CLOSING INVENTORY		1830600
TO DEPRECIATION:-
BUILDING 2% OF (43459800	869196
EQUIPMENT 25% OF (5424000	1356000
FURNITURE 10% OF (3390000	339000	2564196
TO RENT		650880
TO ADMINISTRATIVE EXPENSE		1179720
TO UTILITIES	671220
LESS:- PREPAID UTILITIES	94920	576300
TO EXCESS OF INCOME OVER EXPENDITURE	2690304
TOTAL		38307000	TOTAL		38307000

STATEMENT OF FINANCIAL POSITION OF PARKER EXCLUSIVE MENS CLUB
FOR THE YEAR ENDED 31 MAY 2020
LIABILITIES		AMOUNT	ASSETS		AMOUNT
ACCUMULATED FUND	48002400		FIXED ASSETS
ADD:- PROFIT FOR THE YEAR	2690304	50692704	BUILDING	43459800
			EQUIPMENT	5424000
ADVANCE SUBSCRIPTION FOR 2020-21		813600	FURNITURE	3390000	52273800
ACCURED SALARIES		135600	ADVANCE AFFLIATION FEES PAID		339000
ACCUMULATED DEPRECIATION			BANK ACCOUNT		8475000
BUILDING (17383920+869196)	18253116		PREPAID UTILITIES		94920
EQUIPMENT(1356000+1356000)	2712000		CLOSING INVENTORY		1830600
FURNITURE (339000+339000)	678000	21643116	SAVING ACCOUNT		11526000
LIFE MEMBERSHIP FEE		1254300
TOTAL		74539320	TOTAL		74539320