Question

On 1 January 2010 The Happy Haddock Angling Club had the following assets:

Answer 1

The preparation of an income and expenditure account for the year ended December 31, 2010, for The Happy Haddock Angling Club is as follows:

The Happy Haddock Angling Club

Income and Expenditure Account

For the year ended December 31, 2010

Snack bar income               Rm 6,000

Cost of snacks                           3,650

Gross profit from bar                2,350

Snack bar expense                     600

Snack bar operating income    1,750

Other expenses:

Rent and rates          Rm1,500

Secretarial expenses       240

Interest on loan               260 2,000

Net loss                                Rm 250

What is an income and expenditure account?

An income and expenditure account is the income statement prepared by non-trading entities to determine the surplus or deficit of income over expenditures for a period.

Data and Calculations:

Cash at bank Rm 200

Snack bar inventory 800

Clubhouse buildings 12,500

Equity = Rm 13,500 (Rm 200 + 800 + 12,500)

Cash Account:

Receipts:                                            Payments:

Subscriptions 2010       Rm3,500    Rent and rates              Rm1,500

Subscriptions 2011                380     Extension to dub house  8,000

Snack bar income             6,000     Snack bar purchases       3,750

Visitors' fees                         650     Secretarial expenses         240

Loan from bank                5,500      Interest on loan                 260

Competition fees                820       Snack bar expense          600

                                                         Games equipment         2,000

                                                         Balance c/d                       500

                                       16,850                                            16,850

Notes:

The snack bar inventory on 31 December 2010 was RM900

The Games equipment should be depreciated by 20%.

Cost of Snacks Bar Sales:

Snack bar inventory 800

Snack bar purchases 3,750

Total snack bar available = Rm 4,550

Snack bar ending inventory Rm 900

Cost of snacks sold = Rm3,650

Games Equipment Depreciation = Rm 400 ( Rm 2,000 x 20%)

Rent and rates              Rm1,500

Secretarial expenses         240

Interest on loan                 260

Snack bar expense          600

Snack bar income             6,000

Subscriptions 2010       Rm3,500

Visitors' fees                         650

Competition fees                820

Learn more about preparing an income and expenditure account at brainly.com/question/24498019

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