On 1 January 20x3, these balances appeared in the books of the Stayfit Club:

Listed below are the receipts and payments for the year ended 31 December 20x3:

Additional information:

1. Entrance fees are to be posted to accumulated fund accounts.

2. Donations received may be used to cover running expenses.

• Inventory on hand, 31 December 20x3:

• Crockery is valued at R150 on 31 December 20x3.

• Equipment is to be depreciated by 20% per annum using the straight-line method.

• Unpaid membership subscription fees for 20x2 is to be written off as irrecoverable.

• Membership subscription fees in arrears for 20x3 amounted to R45.

• Interest on the loan from B. Samson is payable at 12% per annum.

You are required to:

1. Prepare a refreshments trading account and an income and expenditure account of the Stayfit Club for the year ended 31 December 20x3.

2. Prepare a statement of financial position as at 31 December 20x3.

Transcribed Image Text:

Inventory: Refreshments Stationery Bank (Dr.) Accounts payables Equipment (book value) Membership subscription fees owing Loan from B Samson Accumulated fund 120 00 30 00 147 00 50 00 4 000 00 53 00 600 00 3 700 00