a) State and briefly explain any three distinguishing features between (i) receipts and payments…
a) State and briefly explain any three distinguishing features between (i) receipts and
payments account and (ii) income and expenditure account. (6 marks )
b) The accountant of Mamba Sports club has extracted the following information from the books of account for the year ended 31st March 2012
| Receipts | shs Payments shs |
| Balance b/f | 288,000 Salaries and wages 254,000 |
| Subscriptions: |
New equipment 565,000 |
| Year 2010/2011 | 249,000 Repairs and maintenance 124,000 |
| 2011/2012 | 2,050,000 Office expenses 415,000 |
| 2012/2013 | 194,000 Printing and stationery 168,000 |
| Dinner dance | 723,000 Purchase of beverages 497,000 |
| Beverage sales | 657,000 Dinner dance expenses 315,000 |
| Investment income | 400,000 Refund of subscriptions 45,000
Sports prizes 25,000 Transport 248,000 Investments 1,500,000 Balance c/d 405,000 4,561,000 4,561,000 |
| Balances as at | 31 March 2011 31 March 2012Sh Sh |
| Furniture and fittings(net) |
240,000 – |
| Equipment |
690,000 – |
| Investments at cost |
3,500,000 – |
| Subscriptions in arrears |
300,000 375,000 |
| Salaries accrued |
68,000 72,000 |
| Stock of beverages |
162,000 184,000 |
| Subscriptions in advance |
85,000 – |
Additional information:
1. Subscriptions in arrears are written-off after twelve months
2. Depreciation is provided for on reducing balance method at 10% and 20% per annum on furniture and fittings and equipment respectively
3. Investments, which had cost sh 500,000 were sold on 30 March 2012 for sh 625,000.
No entries have been made in the books in this respect.
Required:
i) Income and expenditure account for the year ended 31 March 2012 (8 marks)
| ii) Statement of financial position as at 31 March 2012QUESTION FOUR | (6 marks) |
