The following is the receipts and payments account of the Friendship Club for the year ended 31 December 2012:

Kshs (000) Kshs (000)

Balance at bank

31 December 2011 102 Bar purchases 4,434

Entrance fees 42 Wages 416

Subscriptions:2011 25 Rent 186

2012 305 Heating and lighting 128

2013 35 Postage and stationery 33

Bar Sales 5,227 Insurance 18

Sale of investments 750 General expenses 46

Payments on account of new furniture

450

____ Balance at bank,

31 December 2012

775

6,486 6,486

The following information is also supplied:

(1) 31 December 2011

Kshs (000) 31 December 2012

Kshs (000)

Bar stock, at cost 272 315

Creditors for bar purchases 306 358

Rent due 18 36

Heating and lighting expenses due 16 19

Subscriptions due 25 40

Insurance paid in advance 5 7

2) On 31 December 2011, the club held investments which cost Kshs500,000.During the year ended 31 December 2012, these were sold for Kshs 750,000.

3) Furniture was valued at Kshs (000)300 on 31 December 2011.On June 2012, the club purchased additional furniture at a cost of Kshs 520,000.Depreciation of all furniture is to be provided for at the rate of 10% per annum.