On 1 January 20x4, these balances appeared in the records of EWR Rugby Club:

Adjustments and other information:

1. On 31 December 20x4, the amount owed to bar payables amounted to R326.

2. The accrued expenses on 1 January 20x4 was for salaries, while the prepaid expenses on 1 January 20x4 was for stationery on hand.

3. On 1 January 20x5, the secretary’s salary (R80) for December 20x4 was paid.

4. On 31 December 20x4:

– The inventory of alcohol was valued at R600 and glassware at R390.

– The value of stationery on hand amounted to R60, and accounts for stationery (R100) and insurance (R20) were still outstanding.

5. Depreciation on sports equipment amounted to R228.

6. Membership subscription fees in arrears at 31 December 20x4 amounted to R68. The balance of the membership subscription fees in arrears for 20x3 are irrecoverable.

7. The debentures were bought by the club on 1 July 20x4.

8. Entrance fees must be capitalised.

You are required to:

Prepare a bar trading account, an income and expenditure account, and a statement of financial position for the year ended 31 December 20x4.

Transcribed Image Text:

LIABILITIES Membership subscription fees received in advance (20x4) Bar payables Accrued expenses Accumulated funds Gate money received Bar sales 28 00 590 00 80 00 6 694 00 Entrance fees Membership subscription fees: 20x3 20x4 20x5 7 392 00 ASSETS Membership subscription fees in arrears Prepaid expenses Buildings Inventory: Liquor Bank Here are the receipts and payments for the year ended 31 December 20x4: RECEIPTS PAYMENTS Glassware Sports equipment 1 600 00 Barman's wages 3 756 00 86 00 Repairs to buildings Bar payables Salary and wages Glassware bought 22 00 1 570 00 Sports equipment 28 00 Investment: 4% debentures Maintenance of grounds Stationery 42 00 28 00 6 300 00 106 00 316 00 ******* 400 00 200 00 7 392 00 800 00 300 00 3 266 00 1 024 00 122 00 300 00 1 000 00 246 00 32 00 *********