The N. I. Jock United Social Club was started in 20W0 to provide facilities for Jock United Football Supporters in Northern Ireland. At 1 January 20X2 there were 400 paid-up members for 20X1 (£20 per annum) and 20 members who still owed their dues for 20X1. Ten members had already paid their subscriptions for 20X2 before the current year (in advance). Refreshments were served at each match and a group of members provided the meals at cost plus 20 per cent. Travel to matches was arranged and any surplus was put into club funds. Functions during the winter were varied and many were open to the public. The Club rented premises, which they furnished at a cost (in 20W8) of £3,000, and had hired gaming machines on which they paid 30 per cent of the takings.

On 1 January 20X2 the Club owed money to three companies for merchandise. The amounts owed are as follows:

Sam Ltd........ 100

Jockie Ltd......200

Bisto Ltd .......150

During the year the Club received goods from these companies worth the following:

3 February 20x0.........Sam Ltd.........1500

5 August 20X2.........Jockie Ltd.........1200

6 September 20X2..... Bisto Ltd..........500

They returned goods to Bisto Ltd worth £500 as they were unhappy with the quality of the products. Sam Ltd gave 10 per cent discount as the Club paid that account within one month.

On the 31 December 20X2 there were unpaid accounts for secretarial expenses of £450 and printing brochures for trips/outings to matches in England of £200. Rates of £600 had been paid to 31 March 20X3. The rates paid last year amounted to £500. The last electricity bill amounting to £600 was paid for on 15 December 20X2 for the period to 31 October 20X2. The bill for the period to 31 January 20X3 has not yet been received.

The following is the cash record for the year to 31 December 20X2:

Required
a. Open personal accounts in the purchases ledger and post the transactions. Write up the purchase ledger control account and reconcile the balance on the control account with the balances on the personal accounts.
b. Prepare an income and expenditure account for the year ended 31 December 20X2, taking into consideration that the furnishings have been depreciated at the rate of 10 per cent per annum (reducing balance method) since purchase; that at 1 January 20X2 there was an inventory of refreshments of £300 and that at 31 December 20X2 the inventory had been reduced to £100.
c. Prepare a statement of financial position for the club as at 31 December 20X2.

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Cash cccoun 2.500 Merchandise Sam Ltd 8,300 Balance 1 January 20X2 Subscriptions Ticket receipts for matches Sale of vefreshments Gaming mochine receipts Travel to matches Compehtion entry fees Dance receipts 1.350 1,300 150 800 -Jockie Ltd 660 1,100 1,600 -Bisto Ltd Refreshments and food Printing and stotionery: 600 Dances 200 Matches 500 Rent 100 200 2,000 600 2,000 790 400 150 120 500 560 1,000 150 3,290 15,460 Roteshea Light and heat General expenses Dance expenses Matches-Coach Meols Competion oxpanses Secretary's expenses Filing cabinet Freezer Balance 31 December 20X2 15,460