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Question 5 Required From the following, taken from the books of Bingo Club, prepare: (a) the income and expenditure account for the period ended 31 December 2002; (b) the subscriptions account (balanced properly); and (c) the refreshments account in order to determine the profit or loss to be transferred to the income and expenditure account. Balances at 1 January 2002: R Accumulated funds Loan from West Bank (15%) Club equipment (cost) Accumulated depreciation on club equipment Stocks on hand: Refreshments Stationery Income received in advance: subscriptions Income receivable: subscriptions in arrears Bank balance Petty cash balance Buildings, at cost Statement of receipts and payments for the year ended 31 December 2002: 2073 18 570 10 000 16 000 2 400 1 400 420 140 90 4 860 250 8 090 . G Receipts Payments R R Balances (01/01/2002) Bank Petty cash Subscriptions: 2001 2002 2003 Refreshments sales Entrance fees Donations Interest on loan 4 860 Stationery 250 Affiliation fees 60 Refreshments purchases 8 760 Honorarium 220 Water and electricity 12 680 Wages 380 Postage 1 800 Balances (31/12/2002) Bank Petty cash 29 010 750 350 200 7 860 100 480 3 600 20 15 400 250 29 010 Activate Windows Adjustments: 1. Stocks on hand: Refreshments, R1 420 Stationery, R170 2. Subscriptions still outstanding for 1991 should be written off. 3. R240 (subscription fee) is still outstanding for 1992. 4. Entrance fees should be treated as revenue income. 5. Provide for outstanding interest on loan. 6. Calculate depreciation on club equipment at 15% p.a. on the diminishing balance method. [15]

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