These balances were taken from the books of the Welkom Squash Club at 28 February 20x8:

This a summary of the club’s cash transactions for the year ended 28 February 20x9:

Adjustments:
1. Inventory on hand:

2. R60 of the subscription membership fees due on 28 February 20x8 must be written off as irrecoverable.

3. Membership subscription fees still due on 28 February 20x9, R35.

4. Membership subscription fees prepaid on 28 February 20x9, R15.

5. Depreciation on furniture and equipment amounted to R250.

6. The fixed property should be depreciated by 2.5%.

7. Interest on loan due amounts to R9.

8. An account of R7 for water and electricity for February 20x9 has not been paid.

You are required to:

1. Prepare a statement of income and expenditure for the year ended 28 February 20x9.

2. Prepare a statement of financial position as at 28 February 20x9.

Transcribed Image Text:

ASSETS Cash at bank Accounts receivable (membership subscription fees due) Inventory on hand: Stationery Squash balls Furniture and equipment Fixed property LIABILITIES 84 00 Loan: H. Steyn 90 00 Accounts payable Accumulated fund 14 00 60 00 248 00 00 2016 00 1 520 1 600 00 26 00 390 00 2016 00