CAT ONE

Question

(a) State and briefly explain any three distinguishing features between (i) a receipts and payments account and (ii) an income and expenditure account. (6 marks)

(b) The accountant of Mamba Sports Club has extracted the following information from the books of account for the year ended 31 March 2001:

Receipts	Sh.	Payments	Sh.
Balance brought forward Subscriptions: Year 1999/2000 2000/2001 2001/2002 Dinner dance Beverage sales Investments income	288,000 249,000 2,050,000 194,000 723,000 657,000 400,000 ________ 4,561,000	Salaries and wages New equipment Repairs and maintenance Office expenses Printing and stationery Purchase of beverages Dinner dance expenses Refund of subscriptions Sports prizes Transport Investments Balance carried forward	254,000 565,000 124,000 415,000 168,000 497,000 315,000 45,000 25,000 248,000 1,500,000 405,000 4,561,000

Balances as at	31 March 2000 Sh.	31 March 2001 Sh.
Furniture and fittings (net) Equipment (net) Investments at cost Subscriptions in arrears Salaries accrued Stock of beverages Subscriptions in advance	240,000 690,000 3,500,000 300,000 68,000 162,000 85,000	- - - 375,000 72,000 184,000 -

Additional information

1. Subscriptions in arrears are written-off after twelve months.
2. Depreciation is provided for on reducing balance method at 10% and 20% per annum on furniture and fittings and equipment respectively.
3. Investments which had cost Sh.500,000 were sold on 30 March 2001 for Sh.625,000. No entries have been made in the books in this respect.

Required:

(a) Income and expenditure account for the year ended 31 March 2001. ( 8 marks)