Use the information below to answer question Total sales of ticket.......................₦300 000 Amount received from the sales..............₦260 000 Cash ...

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.