Q2

On 1 January 2019, Accra Hearts of Oak football club in Ghanahad the following resources:

land & building GHS81,900; bar inventory GHS900; bank GHS22,000

ReceiptsPayments

GHSGHS

Dues 20002,400Power & Electricity1,500

Dues 1999 750Extension to club house6,000

Sales at bar8,200bar purchases 3,700

Tourist fee 570carriage inwards 220

10% Loan- Amankwa 7,000charges paid- Amankwa 900

Competition fees 820barman 380

Games equipment 2,000

Additional information:

a) Subscription owing by members @ 31/12/2019 was GHS6,200

b) Refreshment inventory was valued; 1/1/2019 at GHS3,000

c) Non-current assets are depreciated at 25% per annum. Land& building never depreciated

d) Refreshment barman salary for the year accrued GHS 2,000

e) At 1/1/2019 the clubs equipment was of value @ GHS22,400

Required:

1. Draft the bar profit or loss account for the year ended 31/12/2019 .

2. Prepare an income and expenditure account for the year ending 31/12/2019