QUESTION TWO The following is the receipts and payments account of Cheka Kidogo Sports Club for the year ended 30 September 2017: Receipts Bank and cash balance brought forward Subscriptions Dinner dance Canteen sales Dividends Balances of assets and liabilities as at 30 September. Sh."000 Payments Sh."000" 6.912 Repairs and maintenance 2.976 59,832 Purchases of sports equipment 13,560 17,352 Salaries and wages 6,096 15,768 Office expenses 9.960 9,600 Printing and stationery 4,032 Canteen purchases 11.928 Dinner dance expenses 7,560 Refund of subscriptions 1,080 Sports prizes 600 Transport 5.952 Shares from companies 36,000 Balance carried forward 9.720 109,464 109,464 2016 2017 Sh."000 Sh."000" Land and sports field 24,000 24,000 Sports equipment (net book value) 16,560 ? Furniture and fittings (net book value) 5.760 ? Investment in company shares 84,000 ? Subscription in arrears 7,200 9,000 Salaries accrued 1,632 1,728 Inventory for canteen 3,888 4,416 Subscriptions in advance 2,040 Additional information: 1. Depreciation is to be provided for on a reducing balance basis at the following rates: Non-current asset Furniture and fittings Sports equipment Rate per annum 10% 20% 2. 3. During the year ended 30 September 2017, company shares valued at Sh.12,000,000 were sold for Sh.15,000,000. No entries have been made in the books in this respect. During the year ended 30 September 2017, subscriptions received amounting to Sh.5.976,000 were for the year ended 30 September 2016, while Sh.4,656,000 were for the year ended 30 September 2018. 4. Any subscription in arrears after a period of twelve months is written off. Required: (a) Canteen income statement for the year ended 30 September 2017. (b) Income and expenditure account for the year ended 30 September 2017. (c) Statement of financial position as at 30 September 2017. (3 marks) (10 marks) (7 marks)