Given:Club trading profit ₦12,000 Members'' subscription ₦15,000 Profit on sale of fixed assets ₦2,500 Loss on sale of investments ₦1,000 Wages ₦16,500 Othe...
Determine the club''s excess of income over expenditure?
Answer Details
To determine the club's excess of income over expenditure, we need to calculate the total income and total expenditure and then subtract the total expenditure from the total income.
Total Income = Club trading profit + Members' subscription + Profit on sale of fixed assets
Total Income = ₦12,000 + ₦15,000 + ₦2,500
Total Income = ₦29,500
Total Expenditure = Loss on sale of investments + Wages + Other expenses
Total Expenditure = ₦1,000 + ₦16,500 + ₦10,000
Total Expenditure = ₦27,500
Excess of Income over Expenditure = Total Income - Total Expenditure
Excess of Income over Expenditure = ₦29,500 - ₦27,500
Excess of Income over Expenditure = ₦2,000
Therefore, the club's excess of income over expenditure is ₦2,000.