Question

Section B (Bookkeeping Practice) - 6. Ifelodun Friendship Society - Receipts and Payments Account for the year ended 31st December 2020: Receipts - Balance b/d #10,000; Bar sales #6,500; Subscriptions #12,000; Life membership #2,500; Donations #7,000 (Total #38,000). Payments - Bar stocks #3,400; Electricity #560; Repairs of equipment #800; Donations #4,500; Maintenance #1,200; Bar expenses #700; Rent #600; Balance c/d #26,240 (Total #38,000). Additional info: Bar stocks #800 (1 Jan 2020) / #900 (31 Dec 2020); Subscriptions in arrears #1,200 (1 Jan) / #1,500 (31 Dec); Subscriptions in advance #500 (1 Jan) / #1,000 (31 Dec); Accrued electricity #160 and rent prepaid #120 at 31 Dec 2020. Required: (a) Subscriptions Account; (b) Bar Trading Account for the year ended 31 December 2020; (c) Income and Expenditure Account for the year ended 31 December 2020.

Accepted Answer

(a) SUBSCRIPTIONS ACCOUNT
Dr: Balance b/d (arrears) #1,200; Income and expenditure account #11,800; Balance c/d (advance) #1,000. Total #14,000.
Cr: Balance b/d (advance) #500; Cash #12,000; Balance c/d (arrears) #1,500. Total #14,000.

(b) BAR TRADING ACCOUNT for the year ended 31 December 2020
Dr: Opening stock #800; Purchases #3,400; Cost of goods available for sale #4,200; Less: Closing stock #900; Cost of goods sold #3,300; Bar expenses #700; Bar profit (transferred to Income & Expenditure) #2,500. Total #6,500.
Cr: Bar sales #6,500.

(c) INCOME AND EXPENDITURE ACCOUNT for the year ended 31 December 2020
Expenditure: Repair of equipment #800; Electricity (#560 + #160 accrued) #720; Rent (#600 - #120 prepaid) #480; Maintenance #1,200; Donations (paid out) #4,500; Excess of income over expenditure #16,100. Total #23,800.
Income: Subscriptions #11,800; Bar profit #2,500; Life membership #2,500; Donations (received) #7,000. Total #23,800.

WAEC Book Keeping 2023 Theory — Question 11

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