Revision

Question 4:

Western Innovators is a youth club in Westmoreland, Jamaica that engages its members in the buying and selling of Reggae CDs that are sold to tourists to provide income for the club. For the financial year ending December 31, 2015 the clerical officer of the club provided the following information in relation to the clubs activities:

Payments $	Receipts $
Electricity 120,000	Members fees 300,000
Payment for lease of premises 60,000	Sale of Reggae CDs 800,000
Purchase of Reggae CDS 320,000	Refreshment, etc. sale 600 ,000
Refreshments, etc. 280,000	Donations 250,000
Stipend for clerk 96,000	Other activities 200,000
Stationery 50,000

Notes:

(i) On January 1, 2015 the club had Reggae CDs valued at $350,000.

(ii) On December 31, 2015 the club owed $25,000 for electricity, while $10,000 was paid for stationery that was to be received in January 2016.

(iii) The opening cash balance on January 1, 2015 was $620,000 while Reggae CDs in stock on December 31, 2015 was valued at $400,000.

Required:

1. The Receipts and Payments Account for the year ending December 31, 2015. (8 marks)
2. The Reggae CDs Trading Account for the financial period. (4 marks)
3. The Income & Expenditure Account for the financial period. (8 marks)