Answer to Question #157021 in Financial Math for Doris

Question

A summary of the UK football club salut shown below, from it and additional information, you are to construct and income and expenditure account for the year ended December 31, 2019 and a balance sheet as at that date.

Cashbook summary

Balance January 1, 2019 $180 purchase of equipment $125

Collection at matches $1650 rent for football pitch $300

Profit on sale of refreshments $315 printing and stationery $65

Secretary expenses $144

Repairs to equipment $46

Groundsman wages $520

Miscellaneous expenses $66

Balance at 31 December 2019 $879

$2145 $2145

Further information

A. At Jan 1, 2019, equipment was valued at $500

B. Depreciate all equipments 20% for the year 2019

C. At December 31st 2019, Rent Paid In Advance was $60

D. At December 31st 2019, there was $33 owing for printing

Answer 1

Answer:

Income and expenditure account is prepare where the society or non profit organization is running and balance is prepared on that date.

Profit earning is not the motive of this organization.

We will prepare the opening balance sheet also to find out the opening capital fund.