Life subscriptions Accumulated fund 50 800 Subscriptions Subscriptions -- 1997 The accounting records of the Happy Tickers Sports and Social Club are in a mess. You manage to find the following information to help you prepare the accounts for the year to 31 December, 1997. Summarised Balance Sheet as at 31.12.1996 Liabilities Rs Assets Insurance (three months) R$ 150 Subscriptions - 1997 Half-share in motorised roller 600 120 New sports equipment unsold 1,000 1.400 1,670 Used sports equipment at valuation 700 2,900 Rent (two months) 200 Subscriptions - 1996 Cafe stocks Cash and bank 1.210 4,570 4570 Receipts Rs Payments RS 1996 40 Rent (for 12 months) 1,200 Subscriptions - 1998 1,100 Insurance (for 18 months) 900 Subscriptions - Life 80 To Suppliers of sports equipment 1.000 From sales of new sports equipment 200 To Cafe suppliers 1.900 From sales of used sports equipment 900 Wages of Cafe Manager 2,000 Cafe takings 14 Total cost of repairing motorised roller 450 4,660 6,994 7.450 Notes: (1) Ownership and all expenses of the motorised roller are agreed to be shared equally with the Carefree Convey- ancers Sports and Social Club which occupies a nearby site. The roller cost a total of Rs 2,000 on January 1, 1993 and had an estimated life of 10 years. (2) Life subscriptions are brought into income equally over 10 years, in a scheme begun in 1992. Since the scheme began the cost of Rs 200 per person has been constant. Prior to 31 December 1996, 10 life subscriptions had been received. (3) Four more annual subscriptions of Rs 20 each had been promised relating to 1997, but not yet received. Annual subscriptions promised but unpaid are carried forward for a maximum of 12 months. (4) New sports equipment is sold to members at cost plus 50%. Used equipment is sold off to members at book valuation. Half the sports equipment bought in the year (all from a cash and carry supplier) has been used within the club, and half made available for sale, new to members. The 'used equipment at valuation figures in the 31 December 1997 Balance Sheet is to remain at Rs 700. (5) Closing cafe stocks are Rs 850 and Rs 80 is owed to suppliers at 31 December 1997. Required: (a) Calculate profit on cafe operations and profit on sale of sports equipment. (b) Prepare statement of subscriptions income for 1997. Prepare Income and Expenditure Account for the year to 31 December, 1997 and Balance Sheet as at Ist December, 1997, monte