3.

The Treasures of the Southern Jazz Club drew up the following Receipts and Payments
Account for the year ended 3 !ecember "ear #$
% %
&alance at ban' (ire of rooms )*++
January "ear # 3*,-+ Annual subscriptions to
.ational Jazz Association /+
0ember1s subscriptions 3*/)+ 2esti3al e4penses *#5+
Sales of 2esti3al tic'ets *,6+ Printing and Postage ,-,
Sales of food and drin' )*53+ Purchases if e7uipment *)++
Purchase of good and drin' )*6,+
&alance at ban' c8f 3*,)
*#/+ *#/+
The following additional information was a3ailable$
9: 0ember1s subscriptions arrears at 3 !ecember "ear # were %/+.
9): ;n January "ear #* the club owned e7uipment worth %)*-++. <t was decided
that the e7uipment owned at 3 !ecember "ear # should be depreciated by %5++.
Required;
Prepare the <ncome and =4penditure Account in respect of the Southern Jazz Club for the
year ended 3 !ecember "ear #* together with a &alance Sheet at 3 !ecember "ear #.
/. The >easowe 2ilm Appreciation Society was formed on January "ear ,. 0embers
would meet once each month to watch and discuss films* and perhaps hear lectures from
guest spea'ers on a film sub?ect. <t was agreed that society members would each pay an
annual subscription of %3/ for "ear ,.
The society treasures summarized the Receipts and Payments for "ear , as follows$
%
Receipts *6)+
Subscripts /+

!onations +/
Proceeds of sale of raffle tic'ets
Payments
Purchase of film pro?ector /,+
(ire of films 3/
Purchase of boo's -+
(ire of room for society meetings )-+
Treasurer1s fee /+
2ees to guest spea'ers -6
Raffle prizes 3,
Refreshments ser3ed at meetings -3
All cash is ban'ed immediately on receipt* and all payments are made by che7ue.
The following matters should be ta'en into consideration at 3 !ecember "ear ,$
9: The subscription for "ear # had been fi4ed as %6+ per member* and 6 members
has already paid their "ear # subscription.
9): There were no arrears of subscription from "ear ,.
93: The film pro?ector is to be depreciated on a straight line basis o3er / years.
96: The intention is build up a library of film boo's. &oo's are to be treated as an
asset of the society* and depreciated o3er 6 years on a straight line basis.
9/: An in3oice due* for film hire* has not yet been paid* The amount is %6+.
9-: The society pays %)+ per month for room hire. The rent for the January "ear #
meetings has already been paid.
95: Refreshments stoc's* 3alued at cost were %5.
Required:
Prepare an <ncome and =4penditure Account for the >easowe Appreciation Society for
the year ended 3 !ecember "ear ,* and a &alance Sheet at that date.
)