Question

8. Boyson social club presented the following statements for the year ended 31st December, 2016.
Receipts and Payments Account (Le): Balance b/f 5,700; Maintenance of building 12,600; Maintenance of grounds 6,400; Prizes for fun fair 8,400; Bar purchases 8,000; Bar expenses 2,000; Funeral expenses 10,200; Staff salaries 30,000; General expenses 3,600; Donations to hospital 12,500; Printing magazines 5,300; Balance c/d 11,000; total receipts 97,500.
Additional info: Subscription-in-arrears (01/01/16 3,900, 31/12/16 7,400); Subscription-in-advance (8,400 / 6,300); Bar debtors (2,630/3,930); Bar stock (1,500/2,200); Bar expenses owing (540/370). Five new members had not paid membership dues of Le300 each for the year.
You are required to prepare for Boyson Social Club for the year ended 31/12/16: (a) Subscriptions Account; (b) Bar Trading Account; (c) Income and Expenditure Account.

Accepted Answer

(a) Subscriptions Account: Arrears b/d 3,900 + Income & Expenditure (subscriptions earned) 60,100 = balances against Cash received 54,500 + Arrears c/d 7,400 + Advance b/d 8,400, giving arrears c/d 7,400 and advance c/d 6,300.
(b) Bar Trading Account: Bar stock (opening) 1,500 + Purchases 8,000 = Bar stock available for sale 9,500, less closing stock 2,200 = Bar stock sold 7,300, plus bar expenses 1,830, giving Bar profit of Le5,210 against Sales (bar debtors workings) of Le14,340.
(c) Income and Expenditure Account: Income — Subscriptions 60,100, Funfair proceeds 4,300, Donations 2,000, Sales of magazine 12,560, Bar profit 5,210 = Le91,070... wait recalc balance figure = total 91,070. Expenditure — Maintenance of building 12,600, Maintenance of grounds 6,400, Prizes for funfair 8,400, Funeral enforced 10,200, Staff salaries 30,000, General expenses 3,600, Donation to hospital 12,500, Printing of magazines 5,300 = 89,000, giving an Excess of income over expenditure of Le2,070.

WAEC Accounting 2018 Theory — Question 8

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