WAEC Accounting 2024 Theory — Question 11

Model answer

(a) Statement of Affairs as at 1/1/2021: Assets — Club equipment 45,000, Bar stocks 6,000, Subscriptions in arrears 30,000, Furniture and fittings 28,000, Bank 20,000 = 129,000; less Liabilities — Subscriptions in advance 50,000, Creditors 15,000 (65,000) = Accumulated fund $64,000. (b) Bar Trading Account: Bar sales 221,400 less Bar cost of sales (Opening bar stock 6,000 + Bar supplies 140,000 = 146,000) = Bar gross profit 75,400; less Bar expenses 71,000 = Bar net profit $4,400. (c) Subscriptions Account: Balance b/d (arrears) 30,000 + Income and expenditure (subscriptions earned) 300,000 = 330,000, matched against Balance b/d (advance) 50,000 + Cash received 280,000 = 330,000. (d) Income and Expenditure Account: Income — Subscriptions 300,000, Donations 50,000, End of year dinner 170,000 (total 520,000); Expenditure — Expenses on dinner 105,000, Donation to hospital 190,000, Affiliation fees 6,000, General expenses 183,000, Depreciation on equipment (10% x 50,000) 5,000, Depreciation on furniture & fittings (10% x 28,000) 2,800, giving a surplus of $20,000.