Extra revision question

Question 1
The Crazy Club’s financial year ends on 30 September 2011. The assets and liabilities of the club
are as follows:
30 September 2010 30 September 2011
Equipment 2,200 2,800
Subscription in arrears 200 180
Subscription in advance 120 110
Creditor for bar stock 350 430
Bar stocks 800 600
Rent owing 150 100
Electricity owing 105 140
Bank 723 1,300

During the year to 30 September 2011, the cash receipts were:

 Subscription $2,100
 Bar collections $4,100
 Annual dinner ticket sales $2,400
 Sales of raffle tickets $ 180

In the same period, the following payments have been made:

 Affiliation fees $ 100
 Purchase of equipments $ 800
 Bar creditors $2,050
 Bar man wages $ 750
 Catering (dinner & dance) $1,440
 Hire of band (dinner & dance) $ 300
 Raffle prizes $ 60
 Rent of hall $1,500
 Printing and postages $ 200
 Electricity $ 581
 Secretary’s expense $ 122
 Repairs to equipment $ 300
You are required to prepare:

a. Bar trading accounting for the year ended 30 September 2011

b. Income & expenditure account for the year ended 30 September 2011
Question 2

On 1 April 2012 Barry and Sean were in partnership sharing profits and losses in the ratio: Barry
5/8 and Sean 3/8. Their trial balance as at 31 March 2013 is as follows:

Trial balance for Barry and Sean as at 31 March 2013

Debit Credit
$ $
Capital account – Barry 25,000
Capital account – Sean 15,000
Current account - Barry 33,000
Current account – Sean 25,000
Discount allowed 1,200
Discount received 2,040
Purchases/sales revenue 496,400 618,950
Trade receivables/trade payables 37,200 50,620
Bank interest 290
Furniture and fittings 8,000
Wages and salaries 40,900
Rent and rates 9,400
Delivery expenses 12,100
Returns inward 1,450
Carriage on purchases 2,700
Heat and light 1,900
Provision for bad debts 2,500
Inventory 52,400
Bank 8,130
Cash 300
722,240 722,240
Other information:

1. Inventory at 31 March 2013 is valued at $58,900.

2. Furniture and fittings are to be depreciated using 5% straight line method.

3. It was agreed to allow Barry $900 and Sean $1,300 for expenses incurred on behalf of the
business during the trading period.

4. Interest accrued on the bank overdraft at the year-end is estimated at $110.

5. It was decided to write off a customer’s balance ($700) and to reduce the provision for bad
debts to $2,000.

6. It has been agreed during the year that as from 1 October 2012 profits and losses should be
divided equally. (It is assumed that profit accrues at an even rate over the year).

Required:

From the trial balance extracted on 31 March 2013 and notes attached, prepare a statement of profit
and loss, a profit and loss appropriation account and a statement of financial position as at 31
March 2013 for the partnership.