The following receipts and payments which account for the year ended 31^st December, 2018 has been prepared from the current bank statements for the Midajaza football club.

Year 2018                          (sh)                       Year 2018                            (sh)

1^st January bid                      34,000                31^st Dec. club house

31^st Dec. subscriptions       172,000                 rates and insurance              7,600

Bar takings                         276,000                 Decorations and repairs     18,200

Donations                            23,360                  Annual dinner catering      13,000

Annual dinner ticket sales     9,400                 Stationery and printing        4,960

                                                                         Bar purchases                   184,000

                                                                         New sport equipment         49,260

                                                                         Hire of films                        1,780

                                                                         Administrator’s salary       94,000

                                                                         Petty cash                            1,850

                                                                         Balance c/d                      140,080

                                          514,760                                                           514,760

Additional information:

1. At 31^st December                                  Year 2017 (sh)                Year 2018 (sh)

Club house at cost (bought 1/1/2014)    300,000                           300,000

Bar stocks at cost                                     36,800                            47,200

Petty cash float                                             600                                200

Bank deposit a/c                                      12,000                            14,600

Subscription received in advance             4,200                              7,200

Creditors for bar supplier                       48,000                             38,000

2. Depreciation is to be provided as follows:

• Clubhouse 10% on cost per annum.
• Sports equipment 25% on cost per annum.

3. The petty cash float is used exclusively for postage.
4. The only entry in the bank deposit account during the year ended 31^st December, 2018 concerns interest.
5. One quarter of the administrator’s salary and one half of the club house costs, including depreciation, are to be apportioned to the bar.
6. The donations received during the year ended 31^st December, 2018 are for the new coaching bursary fund which will be utilized for the provision of training facilities for the promising young sportsmen. It is expected to make the first award during the year 2019.

Required:

1. Bar income statement for the year ended 31^st December, 2018.

                                                                                                (4 marks)

An income and expenditure statement for the year ended 31^st

Answer rating: 100% (QA)

Income statment meaning The Income Statement is one of a companys core financial statements that sho... View the full answer