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On 31 December 2019 the following information for the Sugar Bridge Social Club is
made available to you.
Balances on the 1st January 2019 $
Bank 3,070
Subscriptions in arrears for 2018 290
Subscription received in advance for 2017 420
Equipment 1,800
In respect of the year to 31 December 2018, the following information is given to you:
Subscription received (including 2017
arrears)
5,920
Equipment bought 700
Grounds man’s wages 2,880
Sale of lottery tickets 1,090
Receipts from discos 7,510
Disco cost-including musicians 4,970
Teams’ travelling expenses 1,220
Competition prizes bought 580
Rent of buildings 2,170
Receipt for ground hire 900
Committee expenses 690
Donations from well- wishers 1,500
Subscription due but unpaid at 31st December 2017 amounted to 370. Depreciate
equipment by 10%.
Required:
a. Draw the subscription account. (5 marks)

b. Draw the Receipts and Payments Accounts (10 marks)
c. Draw the Income and Expenditure Accounts (10 marks)
END OF

Respuesta :

Certainly! Let's prepare the accounts for the Sugar Bridge Social Club as requested.

**a. Subscription Account**

For the subscription account, we'll account for the subscriptions received, including arrears and subscriptions received in advance.

```plaintext
Subscription Account for the year ended 31 December 2018
---------------------------------------------------------
| Description | Debit ($) | Credit ($) |
|-----------------------------|-----------|------------|
| Balance b/d (Arrears 2017) | 370 | |
| Subscriptions Received | 5,920 | |
|-----------------------------|-----------|------------|
| Total | 6,290 | |
|-----------------------------|-----------|------------|
| Balance c/d (Arrears 2018) | | 290 |
| Subscription in Advance | | 420 |
|-----------------------------|-----------|------------|
| Total | 6,290 | 6,290 |
---------------------------------------------------------
Balance b/d for the next year | 290 | 420 |
```

**b. Receipts and Payments Account**

This account reflects all cash transactions, including receipts and payments.

```plaintext
Receipts and Payments Account for the year ended 31 December 2018
------------------------------------------------------------------
| Description | Receipts ($) | Payments ($) |
|-----------------------------|--------------|--------------|
| Balance b/d (Bank) | 3,070 | |
| Subscriptions Received | 5,920 | |
| Sale of Lottery Tickets | 1,090 | |
| Receipts from Discos | 7,510 | |
| Receipt for Ground Hire | 900 | |
| Donations from Well-wishers | 1,500 | |
|-----------------------------|--------------|--------------|
| Total Receipts | 19,990 | |
|-----------------------------|--------------|--------------|
| Equipment Bought | | 700 |
| Grounds Man’s Wages | | 2,880 |
| Disco Costs | | 4,970 |
| Teams’ Travelling Expenses | | 1,220 |
| Competition Prizes Bought | | 580 |
| Rent of Buildings | | 2,170 |
| Committee Expenses | | 690 |
|-----------------------------|--------------|--------------|
| Total Payments | | 13,210 |
------------------------------------------------------------------
Balance c/d (Bank) | 6,780 | |
```

**c. Income and Expenditure Account**

This account shows the incomes earned and expenses incurred during the year.

```plaintext
Income and Expenditure Account for the year ended 31 December 2018
-------------------------------------------------------------------
| Description | Income ($) | Expenditure ($) |
|-----------------------------|------------|-----------------|
| Subscriptions | 5,920 | |
| Sale of Lottery Tickets | 1,090 | |
| Receipts from Discos | 7,510 | |
| Receipt for Ground Hire | 900 | |
| Donations from Well-wishers | 1,500 | |
|-----------------------------|------------|-----------------|
| Total Income | 16,920 | |
|-----------------------------|------------|-----------------|
| Grounds Man’s Wages | | 2,880 |
| Disco Costs | | 4,970 |
| Teams’ Travelling Expenses | | 1,220 |
| Competition Prizes Bought | | 580 |
| Rent of Buildings | | 2,170 |
| Committee Expenses | | 690 |
| Depreciation on Equipment | | 180 |
|-----------------------------|------------|-----------------|
| Total Expenditure | | 12,690 |
-------------------------------------------------------------------
Surplus (Excess of Income over Expenditure) | 4,230 |
```

Please note that the depreciation on equipment is calculated as 10% of the equipment value at the beginning of the year ($1,800), which amounts to $180.

These accounts should provide a clear financial picture for the Sugar Bridge Social Club for the year ended 31 December 2018. If you need further assistance or clarification, feel free to ask!

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