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.
Explanation
(a) Omiye social club Income and expenditure account for the year ended 31st December 2015 N N N Income- Subscriptions 130,000 Proceeds from concert 9,000 Interest on deposit 2,400 Income from dance 7,200 148,600 Less Expenditure: Maintenance 13,000 Salaries 10,600 Less: owing 1,000 9,600 General expenses 5,400 Add: outstanding 1,200 6,600 Postage 600 Stationery 1,200 Add outstanding 400 1,600 Dance expenses 4,000 Depreciation: Club house(10%x160000) 16,000 Funiture & fittings (15%x24,000) 3,600 19,600 55,000 Surplus 93,600
(b) Balance sheet as at 31st December 2015 Fixed/non-current assets: Clubhouse 160,000 Less: depreciation 16,000 144,000 Furniture & fittings 24,000 Less: Depreciation 3,600 20,400 164,400 Current assets: Bank deposit 80,000 Cash 116,800 196,800 Less: current liabilities Accruals Stationary 400 General exps 1200 1600 Working capital 195,200 capital employed 359,600 Financed by: accumulated fund 266,000 Add: surplus 93,600 359,600
