1 (20 Marks) The assets and liabilities of the Royals' Sports Club at 31 December 2017 were as follows Land and building at cost less depreciation Bank and cash Bar stock GH 130,980 10,670 2,910 Bar debtors 2,310 Rates prepaid 680 Subscriptions owing to the Club 7,780 Bar Creditors 4,270 Loans to sports club 10,800 Accruals: Rent 130 Electricity Miscellaneous Loan interest Subscriptions paid in advance to the Club The 'receipts and payments account' for the year ended 31 December 2018 was produced as: 1,300 750 330 3,980 Opening balance Bar sales Subscriptions Social events Miscellaneobs GH GHe 10.670 Bar purchases 29,370 40,300 Repayments of loan capital 1,700 17,800 Rent 790 1,770 Rates 3,200 900 Water 380 Electricity 5,060 Insurance 2,210 Repairs to equipment 3,260 Expenses of socials 670 Maintenance of ground 1,330 Wages 1,400 Bar sundries 1,440 Loan interest 970 Miscellaneous 2.660 Closing balance 71,440 17.000 71,440 The following information as at 31 December 2018 was also provided: Stock Bar debtors GH 3,940 500 9,010 Har sroditors Exetine Rev. Francis & A BAIDOO, PM. CA (GID Page 2 of 10 Rent prepaid Water charges owing Electricity owing Creditors for bar sundries Subscriptions: Owings to the club Paid in advance to the club Rates prepaid 160 230 350 650 4,250 6,570 760 Depreciation on the land and building for the year was GH4,980. Required: a) You are to prepare a statement showing the profits earned by the bar, an income and expenditure account for the year ended 31 December 2018, and a statement of financial position at that date