Beruflich Dokumente
Kultur Dokumente
0773821392
Revenue(sales) xx
Less:cost of sales
Opening inventory xx
Add purchases xx
xx
Cost of sales xx
Gross profit xx
Less:bar expenses
Xx
Profit on bar/shop xx
An income and expenditure account is also prepared the equivalent of the profit and loss account of
a business. The expenses of the organisation are deducted from the revenue and the resulting figure is
a surplus or deficit,rather than profit or loss
Income and expenditure account for the year ended 31 december year 2010
dr cr
Income
Subscriptions xx
Profit on bar xx
Competition-entrance fees xx
Less expenses xx xx
Raffle prizes xx
Less raffles costs xx xx
Interest received xx
Profit on disposal xx
xx
Less: Expenditure
General expenses xx
Rates and insurance xx
Compiled by C Munodawafa
0773821392
Income = all items on the debit side of the receipts and payments account excluding proceeds from
sale of non-current assets and donations for a specific purpose
Expenditure =all items on the credit side of the receipts and payments account excluding purchases of
non-current assets
Step 2 prepare a receipts and payments accounts (bank) if one is not prepared for you eg
Cash/Bank account
Balance b/d XX Payments XX
Receipts XX Balance c/d XX
XXX XXX
Step 3 prepare subscriptions acc as given above
Subscriptions Account
This is an account that needs special attention and the format of a typical subscriptions account is as
follows
Arrears b/d xx Prepaid b/d xx
Income and expenditure a/c(balancing figure)xx Bank (subscriptions paid for the year) xx
Prepaid c/d xx Arrears c/d xx
xx xx
Step 4 calculate sales and purchases for any subsidiary activity in the form of trading eg bar trading
Step 5 prepare a trading account for a subsidiary activity as given above for the bar trading
Expenses account
other receivables(Prepaid b/d) xx Owing b/d xx
Bank xx To income statement xx
Owing c/d xx Prepaid c/d xx
xxx xxx
Asset account (at NBV)
1) Life subscriptions when received they should be credited to the deferred income account and
credited to income and expenditure account in equal annual instalments
2) donations if donations are for a special purpose they should not be recorded in the income and
expenditure but shown as a special fund in the statement of financial position not as part of
accumulated fund, but if its not for a specific purpose its income
3) Subscriptions written off if subscriptions owing (arrears) are not received in the following year we
should write them off in the subscriptions account and the income and expenditure as an expense