The WS Music Club was formed on 1 June 20–8. The following information was provided for the year ended 31 May 20–9:

Additional information:

1. The club has 240 members. The annual subscription is $50. On 31 May 20–9 eight members had not paid their subscription and ten members had paid their subscription in advance for the following year.
2. On 31 May 20–9 general expenses accrued amounted to $30 and rent accrued amounted to $200.
3. A ten-year loan from the AB Music Group was received on 1 December 20–8. Interest is payable at 5% per annum.
4. Musical instruments are to be depreciated at the rate of 10% per annum based on the cost of instruments owned at the end of the financial year.

a. Prepare the income and expenditure account for the year ended 31 May 20–9.
b. Prepare a statement of financial position at 31 May 20–9.

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Receipts Subscriptions 12 100 Tickets for concert 1400 Loan from AB Music Group 1000 Payments Rent of rehearsal rooms 5000 Insurance (15 months to 31 August 20-9) 600 General expenses 1720 Concert expenses 990 Musical instruments 3000