a) State and briefly explain any three distinguishing features between (i) receipts and
payments account and (ii) income and expenditure account. (6 marks )
b) The accountant of Mamba Sports club has extracted the following information from the books of account for the year ended 31st March 2012
Receipts shs Payments shs
Balance b/f 288,000 Salaries and wages 254,000
Subscriptions:
New equipment 565,000
Year 2010/2011 249,000 Repairs and maintenance 124,000
2011/2012 2,050,000 Office expenses 415,000
2012/2013 194,000 Printing and stationery 168,000
Dinner dance 723,000 Purchase of beverages 497,000
Beverage sales 657,000 Dinner dance expenses 315,000
Investment income 400,000 Refund of subscriptions 45,000
Sports prizes 25,000
Transport 248,000
Investments 1,500,000
Balance c/d 405,000
4,561,000 4,561,000
Balances as at 31 March 2011 31 March 2012
Sh Sh
Furniture and fittings(net)
240,000 –
Equipment
690,000 –
Investments at cost
3,500,000 –
Subscriptions in arrears
300,000 375,000
Salaries accrued
68,000 72,000
Stock of beverages
162,000 184,000
Subscriptions in advance
85,000 –
Additional information:
1. Subscriptions in arrears are written-off after twelve months
2. Depreciation is provided for on reducing balance method at 10% and 20% per annum on furniture and fittings and equipment respectively
3. Investments, which had cost sh 500,000 were sold on 30 March 2012 for sh 625,000.
No entries have been made in the books in this respect.
Required:
i) Income and expenditure account for the year ended 31 March 2012 (8 marks)
ii) Statement of financial position as at 31 March 2012
QUESTION FOUR
(6 marks)
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