The Taupo Sailing Club provides its members with a number of activities: 

(i) Hire of boats for members; non-members are charged an extra 20% for boat hire 

(ii) Yacht racing competitions 

(iii) A clubhouse with a refreshment bar which is also used for social functions 

(iv) A sailing training school for all age groups. 

The following financial information relates to 1 April 2003.

The following financial information relates to the year ended 31 March 2004.

Further information 

1. At 31 March 2004, members' subscriptions owing amounted to $2000; members' subscriptions in advance for 2004/2005 were $3400. 

2. The club's depreciation policy is as follows. 

• Freehold premises, boatyard and launch facilities, and boats and yachts: 5% per annum on net book value . 
• Fixtures and fittings, and yacht maintenance shop: 10% per annum on net book value. 

3. Creditors at 31 March 2004 were as follows.

Refreshment bar stock at 31 March 2004 was valued at $1600. 

Required 

(a) Prepare Taupo Sailing Club's Club's Income and Expenditure Account for the year ended 31 March 2004 in good format. A Trading Account should be prepared for the refreshment bar. 

(b) Prepare the club's Balance Sheet as at 31 March 2004.

Transcribed Image Text:

Fixed assets at net book valueE200022 Spremn Freehold premises Yacht maintenance shop Boatyard and launch facilities En Fixtures and fittings Boats and yachts Other items Members' subscriptions: in arrears in advance Balance at bank Stocks of refreshments Creditors for refreshments 350 000 42 000 74 000 28 000 465 000 3 000 6 000 94 000 1 250 1 030