5 Required From the following, taken from the books of Bingo Club, prepare: (a) the income and expenditure account for the period ended 31 December 2002; (b) the subscriptions account (balanced properly); and (c) the refreshments account in order to determine the profit or loss to be transferred to the income and expenditure account. Balances at 1 January 2002: R Accumulated funds 18 570 Loan from West Bank (15%) 10 000 Club equipment (cost) 16 000 Accumulated depreciation on club equipment 2 400 Stocks on hand: Refreshments 1 400 Stationery 420 Income received in advance: subscriptions 140 Income receivable: subscriptions in arrears 90 Bank balance 4 860 Petty cash balance 250 Buildings, at cost 8 090 Statement of receipts and payments for the year ended 31 December 2002: Receipts Payments R R Balances (01/01/2002) Interest on loan 750 Bank 4 860 Stationery 350 Petty cash 250 Affiliation fees 200 Subscriptions: 2001 60 Refreshments purchases 7 860 2002 8 760 Honorarium 100 1992 2003 220 Water and electricity 480 Refreshments sales 12 680 Wages 3 600 Entrance fees 380 Postage 20 Donations 1 800 Balances (31/12/2002) Bank 15 400 Petty cash 250 29 010 29 010 _______________________________________________________________________ Financial Accounting I / ICG / Page 30 Adjustments: 1. Stocks on hand: Refreshments, R1 420 Stationery, R170 2. Subscriptions still outstanding for 1991 should be written off. 3. R240 (subscription fee) is still outstanding for 1992. 4. Entrance fees should be treated as revenue income. 5. Provide for outstanding interest on loan. 6. Calculate depreciation on club equipment at 15% p.a. on the diminishing balance method. [15]