QUESTION FIVE (a) State and briefly explain any three distinguishing features between (i) A receipts and payments account and (ii) Income and expenditure account. (6 marks) (b) The accountant of KERICHO Sports Club has extracted the following information from the books of account for the year ended 31 March 2001:

Receipts Sh. Payments Sh.

Balance brought forward 288,000 Salaries and wages 254,000

Subscriptions:

New equipment 565,000

Year 1999/2000 249,000 Repairs and maintenance 124,000

2000/2001 2,050,000 Office expenses 415,000

2001 /2002 194,000 Printing and stationery 168,000

Dinner dance 723,000 Purchase of beverages 497,000

Beverage sales 657,000 Dinner dance expenses 315, 000

Investments income 400,000 Refund of subscriptions 45,000

Sports prizes 25.000

Transport 248,000

Investments 1,500,000

_______ Balance carried forward 405,000

4,561,000

4, 561,000

Balances as at 31 March 2000 31 March 2001

Sh. Sh.

Furniture and fittings (net) 240,000 -

Equipment (net) 690,000 -

Investments at cost 3,500,000 -

Subscriptions in arrears 300,000 375,000

Salaries accrued 68,000 72,000

Stock of beverages 162,000 184,000

Subscriptions in advance 85,000 -

Additional information: 1. Subscriptions in arrears are written-off after twelve months. 2. Depreciation is provided for on reducing balance method at 10% and 20% per annum on furniture and fittings and equipment respectively. 3. Investments, which had cost Sh.500, 000 were sold on 30 March 2001 for Sh.625, 000. No entries have been made in the books in this respect.

Required: (a) Income and expenditure account for the year ended 31 March 2001. (8 marks) (b) Balance sheet as at 31 March 2001. (6 marks)