The treasurer of the Plumpton Leisure Centre has produced the following receipts and payments account for the

Question:

The treasurer of the Plumpton Leisure Centre has produced the following receipts and payments account for the year ended 31 December 2013:

image text in transcribed

(i) Refreshment inventory was valued: 31 December 2012 £680; 31 December 2013 £920. There was nothing owing for refreshment inventory on either of these dates. (ii) On 1 January 2013 the club’s equipment was valued at £32,400. Included in this figure, valued at £420, was the equipment sold during the year for £340. (iii) The amount to be charged for depreciation of equipment for the year is £5,200. This is in addition to the loss on equipment sold during the year. (iv) Subscriptions owing by members at 31 December 2012 nil; at 31 December 2013 £860.

You are required to:

(a) Draw up the refreshment trading account for the year ending 31 December 2013. For this purpose £4,680 of the wages is to be charged to this account; the remainder is to be charged in the income and expenditure account.

(b) Calculate the accumulated fund as at 1 January 2013.

(c) Draw up the income and expenditure account for the year ending 31 December 2013, and a statement of financial position as at 31 December 2013.

Step by Step Answer:

Related Book For  book-img-for-question

Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

Question Posted: