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. Prepare an income and expenditure account for the year ended 31 December 2020 and statement of financial position as at 31 December 2020.
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.
Prepare an income and expenditure account for the year ended 31 December 2020 and
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