The books of Omiye Social Club showed the following information for the year ended 31st December 2015
Balance 3000
subscription 130,000
proceeds from concert 9,000
interest on deposit 2,400
income from dance 7,200
151,600 |
salaries 10,600
maintenance 13,000
stationary 1200
postage 600
Dance expense 4,000
general expenses 5,400
balance c/d 116,800
151,600 |
Balances as at 1st January 2015 were as follows:
Accumulated fund 266,000
Bank deposit 80,000
Clubhouse 160,000
Furniture and fittings 24,000
Additional information
i. Outstanding as at 31st December 2015:
- stationery N400
- general expenses 1,200
ii. Salaries of l0,600 paid including 1,000 owed since 2014.
iii. Depreciate clubhouse by 10% and furniture and fittings by 15%
You are required to prepare:
(a) Income and Expenditure Account for the year ended 31st December 2015
(b) Balance Sheet as at that date.
Income and Expenditure Account for the year ended 31st December 2015
Income:
- Subscription: 130,000
- Proceeds from concert: 9,000
- Interest on deposit: 2,400
- Income from dance: 7,200
Total Income: 148,600
Expenses:
- Salaries: 10,600
- Outstanding Salaries from 2014: 1,000
- Maintenance: 13,000
- Stationery: 1,600 (1,200 outstanding + 400 current)
- Postage: 600
- Dance expenses: 4,000
- General expenses: 6,600 (5,400 + 1,200 outstanding)
- Depreciation on clubhouse: 16,000 (10% of 160,000)
- Depreciation on furniture and fittings: 3,600 (15% of 24,000)
Total Expenses: 56,000
Net Income: 92,600 (148,600 - 56,000)
Balance Sheet as at 31st December 2015
Assets:
- Accumulated fund: 266,000
- Bank deposit: 80,000 + 2,400 (interest on deposit)
- Clubhouse: 160,000 - 16,000 (depreciation)
- Furniture and fittings: 24,000 - 3,600 (depreciation)
Total Assets: 478,800
Liabilities and Equity:
- Subscription: 130,000
- Outstanding expenses: 2,000 (1,600 stationery + 400 general expenses)
- Net Income: 92,600
Total Liabilities and Equity: 224,600
Explanation:
The Income and Expenditure account summarizes the club's income and expenses for the year ended 31st December 2015. The income includes subscription, proceeds from a concert, interest on deposit, and income from dance. The expenses include salaries, maintenance, stationery, postage, dance expenses, general expenses, and depreciation on clubhouse and furniture and fittings. The net income is calculated by subtracting the total expenses from the total income.
The Balance Sheet summarizes the club's assets, liabilities, and equity as at 31st December 2015. The assets include accumulated fund, bank deposit, clubhouse, and furniture and fittings. The liabilities and equity include subscription, outstanding expenses, and net income. The net income is added to the accumulated fund to calculate the total equity. The value of the clubhouse and furniture and fittings are reduced by their respective depreciation amounts. The total assets equal the total liabilities and equity.
Income and Expenditure Account for the year ended 31st December 2015
Income:
- Subscription: 130,000
- Proceeds from concert: 9,000
- Interest on deposit: 2,400
- Income from dance: 7,200
Total Income: 148,600
Expenses:
- Salaries: 10,600
- Outstanding Salaries from 2014: 1,000
- Maintenance: 13,000
- Stationery: 1,600 (1,200 outstanding + 400 current)
- Postage: 600
- Dance expenses: 4,000
- General expenses: 6,600 (5,400 + 1,200 outstanding)
- Depreciation on clubhouse: 16,000 (10% of 160,000)
- Depreciation on furniture and fittings: 3,600 (15% of 24,000)
Total Expenses: 56,000
Net Income: 92,600 (148,600 - 56,000)
Balance Sheet as at 31st December 2015
Assets:
- Accumulated fund: 266,000
- Bank deposit: 80,000 + 2,400 (interest on deposit)
- Clubhouse: 160,000 - 16,000 (depreciation)
- Furniture and fittings: 24,000 - 3,600 (depreciation)
Total Assets: 478,800
Liabilities and Equity:
- Subscription: 130,000
- Outstanding expenses: 2,000 (1,600 stationery + 400 general expenses)
- Net Income: 92,600
Total Liabilities and Equity: 224,600
Explanation:
The Income and Expenditure account summarizes the club's income and expenses for the year ended 31st December 2015. The income includes subscription, proceeds from a concert, interest on deposit, and income from dance. The expenses include salaries, maintenance, stationery, postage, dance expenses, general expenses, and depreciation on clubhouse and furniture and fittings. The net income is calculated by subtracting the total expenses from the total income.
The Balance Sheet summarizes the club's assets, liabilities, and equity as at 31st December 2015. The assets include accumulated fund, bank deposit, clubhouse, and furniture and fittings. The liabilities and equity include subscription, outstanding expenses, and net income. The net income is added to the accumulated fund to calculate the total equity. The value of the clubhouse and furniture and fittings are reduced by their respective depreciation amounts. The total assets equal the total liabilities and equity.