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BBM G

The document presents the receipts and payments account for Kay Club and Ray Society for the year ending December 31, 2020, detailing various income sources and expenditures. It also includes notes on accounting policies, asset valuations, and a proposal for depreciation on an amplifier. Additionally, it outlines requirements for preparing an Income and Expenditure Account and a balance sheet, along with a request for advantages of income and expenditure accounts over receipts and payments accounts.

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samuelmaundu440
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26 views2 pages

BBM G

The document presents the receipts and payments account for Kay Club and Ray Society for the year ending December 31, 2020, detailing various income sources and expenditures. It also includes notes on accounting policies, asset valuations, and a proposal for depreciation on an amplifier. Additionally, it outlines requirements for preparing an Income and Expenditure Account and a balance sheet, along with a request for advantages of income and expenditure accounts over receipts and payments accounts.

Uploaded by

samuelmaundu440
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

BBM 122 Take Away CAT

The treasurer of Kay Club and Ray Society has prepared the following receipts and payments
account for the year ended 31 December 2020:

Sh. Sh.
Receipts Payments:
Opening balance 880,000 Purchase of Amplifier (bought 1 July 350,000
Subscriptions (see note 1) 2020)
Kay Club 1,205,000 Kay Club: 450,000
Ray Society 845,000 Musician fees 410,000
Annual Dinner - Ticket sales 170,000 Coaching fees 165,000
Sale of mobile huts 335,000 Hall rent 400,000
Kay Club festivals - admissions 470,000 Rates for the year to 31 December 2020 55,000
Decorating 80,000
Sales Cleaning 660,000
Clothes 1,050,000 Annual Ray expedition 205,000
Refreshments Annual dinner - hotel & catering
Purchases 4,150,000 Kay Club festival 85,000
Prizes 45,000
Adjudicator’s fees 900,000
Clothes 3,500,000
_______ Refreshments 1,800,000
9,105,000 Closing balance 9,105,000

Note. It is the policy of the Society NOT to take into account subscriptions in arrears until
they are paid.

1) The mobile hut which was sold during 2020 had been valued at Sh.400,000 on 31
December 2019, and was used for the society's activities until sold on 30 June 2020.
2) Immediately after the sale of the mobile hut, the Society rented a new hall at Sh.165,000
per annum.
3) The above receipts and payments account is a summary of the society's bank account for
the year ended 31 December 2020; the opening and closing balances shown above were
the balances shown in the bank statements on 31 December 2019 and 2020 respectively.
4) All cash is banked immediately and all payments are made by cheque.
5) A cheque for Sh.l00,000 drawn by the society on 28 December 2020 for stationery was
not paid by the bank until 4 January 2021.
6) The Society's assets and liabilities at 31 December 2019 and 2020, in addition to those
mentioned earlier, were as follows:

2020 2019
Stocks for goods for resale at cost:
Clothes 650,000 550,000
Refreshments 155,000 300,000
Sundry creditors Annual dinner - catering 35,000
Purchases- Clothes 300,000 200,000
Refreshments 150,000 250,000

It is proposed to provide for depreciation on the amplifier at the rate of 20% per annum on
cost, prorata to time.
Required:
a) The Society's Income and Expenditure Account for the year ended 31 December 2020,
and balance sheet as at that date. (Comparative figures are not required).
(20 marks)

b) Outline the advantages of income and expenditure accounts as compared with receipts
and payments accounts. (10 marks)
(Total: 30 marks)

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