Prepare a statement of profit or loss for the year ended 30 June 2020 and a statement of financial position as at the same date. Question Two The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2020: K’000 K’000 Balance at bank 31 December 2019 112 Bar purchases 4,877 Entrance fees 46 Wages 458 Subscriptions: 2019 28 Rent 205 2020 336 Heating and lighting 141 2021 39 Postage and stationery 36 Bar Sales 5,750 Insurance 20 Sale of investments 825 General expenses 51 Payments on account of new furniture 495 Balance at bank, - 31 December 2017 853 7,136 7,136 The following information is also supplied: (1) 31 December 2019 31 December 2020 K K Bar inventory, at cost 300 347 Payables for bar purchases 337 394 Rent due 20 40 Heating and lighting expenses due 18 21 Subscriptions due 28 44 Insurance paid in advance 6 8 2) On 31 December 2019, the club held investments which cost K550. During the year ended 31 December 2020, these were sold for K825. 3) Furniture was valued at K330 on 31 December 2019. On June 2020, the club purchased additional furniture at a cost of K572. Depreciation of all furniture is to be provided for at the rate of 10% per annum. Required: (a) Prepare an income and expenditure account for the year ended 31 December 2020. (b) Prepare a statement of financial position as at 31 December 2020.
Prepare a statement of profit or loss for the year ended 30 June 2020 and a
Question Two
The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2020:
K’000
K’000
Balance at bank
31 December 2019
112
Bar purchases
4,877
Entrance fees
46
Wages
458
Subscriptions: 2019
28
Rent
205
2020
336
Heating and lighting
141
2021
39
Postage and stationery
36
Bar Sales
5,750
Insurance
20
Sale of investments
825
General expenses
51
Payments on account of new furniture
495
Balance at bank,
-
31 December 2017
853
7,136
7,136
The following information is also supplied:
(1)
31 December 2019
31 December 2020
K
K
Bar inventory, at cost
300
347
Payables for bar purchases
337
394
Rent due
20
40
Heating and lighting expenses due
18
21
Subscriptions due
28
44
Insurance paid in advance
6
8
2) On 31 December 2019, the club held investments which cost K550. During the year ended 31 December 2020, these were sold for K825.
3) Furniture was valued at K330 on 31 December 2019. On June 2020, the club purchased additional furniture at a cost of K572.
Required:
(a) Prepare an income and expenditure account for the year ended 31 December 2020.
(b) Prepare a statement of financial position as at 31 December 2020.
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