Preparation of Income And expenditure account - SS2 Accounting Lesson Note

Question:

The following transactions were recorded for Ademi club for the year ended 31 December, 2020. You are required to prepare a receipts and payments account.

Transactions

Amount (₦)

Sales

35000

Purchases

8300

Rent of building

4000

Purchase of equipment

8000

Wages and salaries

13040

Bank interest

2000

Electricity bill

1500

Insurance

6700

Printing and branding

2670

Repayment of bank loan

8500

Loan from Ada

7900

Subscription received

13350

General expenses

1150

Loan from bank

3300

Answer:

Income and Expenditure accounts

For the year ended December 31, 2020

Income (₦)

Expenditure (₦)

Sales

Subscription

Bank loan

Loan (Ada)

Balance b/d

35000

13350

3300

7900

59550

3690

Purchases

Rent

Equipment