Government accounting

QUESTION 1 (12 marks) Following is the Receipt and Payment Account of an Entertainment Club for the year ended 2017. Receipts Amount Payments Amount Balance b/d Wages 45,500 Bank 87,500 Freight bill 21.000 Hire of ground used for a marriage 112,500 Snack food purchased 60,000 Subscription for the year 2018 10.000 Snack bar expenses 14,500 Collection from tickets 10,000 Books & Magazines 13.000 Snack bar sales 100,000 Gym expenses 50,000 Sale of old periodicals 3,200 Honorarium 30,000 Subscriptions for the year 2017 48,750 8% investments (31.3.2017) 100,000 Life Membership fees 25,000 Establishment expenses 35,000 Store house rent 17,050 Balance c/d - Bank Total 414,000 Total 414,000 Additional information: Freight bill outstanding for the present year was OMR 2,000 Store house rent receivable for the year 2016 was OMR 3,050 and receivable for the year 2017 was OMR 1,500 Wages outstanding for the year 2017 was OMR 4,000 Subscription outstanding for the year 2016 was OMR 15,000. Subscription outstanding for this year 12,500 The opening stock of Books & Magazines was OMR 2,000 while the closing stock was OMR 3,000 The other balances on 1 January 2017 was Furniture - OMR 100,000 & Building - OMR 650,000, Snack bar stock - OMR 15,000 Depreciation on furniture and building were charged at the rate of 12.5% and 5% respectively on straight line method Subscription of 2017 received during the year 2016 was OMR 5,000 Closing stock of Snack bar stock - OMR 20,000 The CEO wants to know the financial position of this Club. As this is not a commercial organization but a Nontrading concern, what kind of accounts do you think his accountant Ms. Hina would have prepared. Prepare the accounts assuming that you are Ms. Hina. Required: Detailed presentation of the accounts should be there to help the CEO to know the financial position of the club for the year 2017 as well as to understand how the fund balance appeared both in the past year (2016) as well as the present year (2017). 2