A treasurer of a tennis club has prepared this draft statement of receipts and payments. The club
Question:
A treasurer of a tennis club has prepared this draft statement of receipts and payments. The club committee, however, wants the financial statements for 20x3 (and subsequent years) to be in the form of an income and expenditure account and a statement of financial position. They have asked you to fix the 20x3 financial statements.
Additional information:
1. On 31 December 20x3, R700 was outstanding for membership subscription fees for 20x3.
2. During 20x2, R230 was received for membership subscription fees for 20x3.
3. The cost of equipment purchased in previous years was:
4. The committee decides that equipment should be depreciated at 10% per annum on cost.
5. Rent has been at the rate of R2 000 per annum for the last two years and is not expected to change in the immediate future.
6. Rates of R750 for the six months to 31 March 20x3 were paid on 2 November 20x2.
7. Interest of R250 on the bank overdraft had accrued at 31 December 20x3.
8. Taxation can be ignored.
You are required to:
1. Prepare the income and expenditure account for the year ended 31 December 20x3.
2. Prepare a statement of financial position as at 31 December 20x2 and 31 December 20x3.
Step by Step Answer:
Income and Expenditure Account for the Year Ended 31 December 20x3 Particulars Amount R Income Mem...View the full answer
Fundamental Accounting
ISBN: 9781485112112
7th Edition
Authors: David Flynn, Carolina Koornhof, Ronald Arendse, Anna C. E. Coetzee, Edwardo Muriro, Louise Christel Posthumus, Louise Mancy Smit
