4. The Abbey Sports Club has 150 male and 200 female members. separate sports activities and maintain separate Receipts and Payments accounts. Males 2. 1250 1120 1400 3000 6830 13600 Receipts and Payments for the period ending June 30, 2000 Printing & Stationery Repairs to equipment Upkeep of grounds Wages for security Bank balance 30/6/2000 500 Bank balance bf Subscriptions received for the period 11800 Rent received for use of equipment 1300 13600 Females Receipts and Payments for the period ending June 30, 2000 24 1500 24 6000 2000 Bank balance bf Subscriptions received: In advance For arrears (1999) For the period Payment for bar supplies Barman wages Bar expenses Coach fees 1300 1500 1600 15000 11000 S000 2000 Repairs to equipment Printing & Stationery Bank balance 30 6 2000 30400 Bar sales 1800 9100 30400 Other information obtained from the books of Abbey Sports Club were as follows: Opening stock of bar supplies Closing stock of bar supplies Barman wages owing June 30, 2000 Bar expenses owing June 30, 2000 Depreciation for the period on Club House Subscriptions owing for the period: Males 700 800 200 150 1200 600 Females 400 There were no amounts owing for bar supplies ar start and end of the period
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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