Use the information below to answer question Total sales of ticket.......................₦300 000 Amount received from the sales..............₦260 000 Cash ...
Question 1 Report
Use the information below to answer question Total sales of ticket.......................₦300 000
Amount received from the sales..............₦260 000
Cash purchase of club house.................₦100 000
Credit purchase of equipment ...............₦60 000
Electricity bill paid ......................₦5 000
Salaries owed ..............................₦2 000What is the balance of the income and expenditure account?
Answer Details
The balance of the income and expenditure account is ₦33,000, which is calculated by subtracting the total expenses from the total income.
Total income from ticket sales is ₦300,000, but only ₦260,000 was received. Therefore, there is an outstanding receivable balance of ₦40,000.
Total expenses are ₦167,000, calculated by adding the cash purchase of club house (₦100,000), credit purchase of equipment (₦60,000), electricity bill paid (₦5,000), and salaries owed (₦2,000).
Subtracting the total expenses of ₦167,000 from the total income of ₦300,000 gives us ₦133,000. However, since only ₦260,000 was received, we need to add the outstanding receivable balance of ₦40,000 to get a balance of ₦293,000.
Therefore, the balance of the income and expenditure account is ₦293,000.
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