CMFI 2106: FINANCIAL ACCOUNTING II – CAT ANSWER

2) COPA kiboko yao Club KES KES

a) Income & Expenditure Account for the year ended 31 Dec 2018 Workings
KES KES Snack bar profit
Income Income 12,000
Subscriptions 7,000 Cost of sales
Visitors' fees 1,300 Opening inventory 1,600
Competition fees 1,640 add: Purchases 7,500
Snack bar profit (see workings) 3,500 9,100
Rent and business rates 13,440 less: closing inventory 1,800
less Expenditure: 7,300
Rent and rates 3,000 Gross profit 4,700
Secretarial expenses 480 less expenses 1,200
Loan interest 520 3,500
Depreciation on games equipment (see workings) 800 Depreciation on games equipment
4,800 Cost rate KES
Surplus of income over expenditure 8,640 4,000 20% 800

b) Balance Sheet as at 31 December 2018 Workings

Accumulated Net Book
Cost Depreciation Value
KES KES KES
Non-current assets
Clubhouse buildings (25,000 + 16,000) 41,000 - 41,000
Games equipment 4,000 800 3,200 Accumulated fund
45,000 800 44,200 Cash at bank 400
Current assets Snack bar inventory 1,600
Snack bar inventory 1,800 Club house buildings 25,000
Bank 1,400 27,000
3,200
47,400
Current liabilities
Subscriptions received in advance 760
Loan from bank 11,000
11,760
35,640
Financed by:
Accumulated fund
Opening balance (see workings) 27,000
Add: surplus for the year 8,640
35,640