The following is the receipts and payments account of the Friendship Club for the year ended 31 December 201 1: Sh. Sh. Balance at bank 31 December 2010 102 Bar purchases 4.434 Entrance fees 42 Wages 416 Subscriptions: 2010 25 Rent 186 2011 305 Heating and lighting 128 2012 35 Postage and 33 stationery Bar Sales 5,227 Insurance 18 Sale of investments 750 General expenses 46 Payments on account of new 450 furniture Balance at bank, 31 December 2011 775 6.486 6.486 The following information is also supplied: (1) 31 December 2010 31 December 2011 Bar stock, at cost 272 315 Creditors for bar purchases 306 358 Rent due 18 36 Heating and lighting expenses 16 19 due Subscriptions due 25 40 Insurance paid in advance 7 2) On 31 December 2010, the club held investments which cost Sh.500. During the year ended 31 December 2011, these were sold for Sh. 750. 3) Furniture was valued at Sh.300 on 31 December 2010. On June 2011, the club purchased additional furniture at a cost of Sh.520. Depreciation of all fumiture is to be provided for at the rate of 10% per annum. Required: (a) Prepare an income and expenditure account for the year ended 31 December 201 1. (b) Prepare a balance sheet at that date