Question 4
On 1 January 2018 The Happy Haddock Angling Club had the following assets:
GHC
Cash at bank200
Snack bar stocks 800
Club house building 12,500
During the year to 31 December 2018 the club received and paid the following amounts:
ReceiptsGHCPPaymentsGHC
Subscriptions 20183,500Rent and rates 1,500
Subscriptions 2019380Extension to club house8,000
Snack bar income 6,000Snack bar purchases 3,750
Visitor's fees 650 Secretarial expenses 240
Loan from bank5, 500Interest on loan260
Competition fees820Snack bar expenses600
Games equipment2,000
Note: The snack bar stock on 31 December 2018 was GHC900.
The games equipment should be depreciated by \( 20 \% \).
Required:
a. Prepare an income and expenditure account for the year ended 31 December 2018. Show, either in this account or separately, the snack bar profit or loss.(13 marks)
b. Prepare statement of Financial Position as at 31 December 2018. (7 marks)
\{20 marks \}
