QUESTION SIX The ABSU Social Club prepares its accounts annually on 31 December. The Receipts and Payments Account for the year ended 31st December 2014 was prepared by the Treasurer as follows: GHe GHe Balance b/d 7000 Caretaker's wages 18,000 Subscriptions received Heating and lighting 4,000 for the year: 2013 600 Insurance 1,000 2014 13,500 Bar payables 22,000 2015 1,100 Dinner dance expenses 1,000 Dinner dance ticket sales 1,800 Equipment purchases 1,200 Bar takings 55,000 Bar staff wages 16,000 Donations 2,500 Savings account 400 Sale of equipment 450 Balance c/d 18,350 81.950 The following additional information is available: 81.950 i) The equipment sold during the year was valued in the books at GH600 on 1st January 2014. The Club's policy is to provide a full year's depreciation in the year of purchase but none in the year of sale. ii) The savings account (short term) pays a fixed rate of interest of 5% per annum. An additional amount of GHC400 was paid into the account on 1st July 2014. There were no withdrawals made during the year. Interest due on 31 December 2014 has not been received. iii) The remaining assets and liabilities of the Club at the beginning and end of the year were: 1st January 2014 31st December 2014 GH Clubhouse 230,000 GHC 230,000 Equipment 26,000 25,200 Savings account (short term) 2,000 2,400 Insurance prepaid 100 80 Bar staff wages owing 180 160 Subscriptions due and unpaid 800 300 Subscriptions paid in advance 700 1,000 Bar payables 2,400 1,400 Bar inventory 7,500 8,700 iv) All subscriptions due for the year 2013, but unpaid on 31 December 2014 are considered to be irrecoverable debts. v) Bar staff wages are the only expense to be charged to the Bar Trading Account. Page 9 of 24 Required: 2014. a) Prepare the Bar Trading Account for the year ended 31st December 2014. b) Prepare the Income and Expenditure Account for the year ended 31 December (8 marks) (5 marks) c) Prepare Statement of Financial Position as at 31st December 2014. (7 marks) (Total: 20 marks)