Oct/Nov 2021

Why would a trader work out the profit made by his business?

Interested parties

At each year-end, PT Limited transfers 20% of the profit for the year into the general reserve. Draft financial statements were drawn up for the year ending 30 September 2021. It was then found that inventory at 30 September 2021 had been overstated by $1500. What impact did correcting this error have on retained earnings and general reserve at 30 September 2021?

Correction of errors

In both the bank columns of a trader’s cash book and the bank statement, the balances were positive. When these were compared, the following discrepancies were found. Cheque not yet credited: $200 Bank charges not entered in the cash book: $10 What difference was there between the balance recorded in the bank column of the cash book and the balance shown on the bank statement?

Bank reconciliation

What is one reason for drawing up a sales ledger control account?

Control accounts

At the start of year 1, two companies each bought a motor vehicle for $10000. Company G applied the straight-line method of depreciation at a rate of $15\%$ per annum, whereas Company H used the reducing balance method at a rate of $20\%$ per annum. What was the difference between the depreciation charges of the two companies in year 2?

Accounting for depreciation and disposal of non-current assets

Amit’s financial year finishes on 31 December. The account below was recorded in his sales ledger. (Dipak account table shown.) What does the entry dated 21 November show?

Business documents

Sally wanted to raise the balance on the provision for doubtful debts account at the close of the financial year. How ought this increase to be recorded?

Irrecoverable debts and provision for doubtful debts

After a statement of financial position was completed, the following mistakes were discovered. 1. A loan due for repayment in two years’ time had been shown as a current liability. 2. A provision for doubtful debts needed to be made. What effect will correcting these mistakes have?

Correction of errors

John keeps a complete set of accounting records. Why, in addition, does he prepare a statement of financial position?

Interested parties

What are the advantages of trading as a sole trader? 1. The owner is able to retain all of the profit. 2. The owner can obtain finance by issuing debentures. 3. The owner can take decisions on their own. 4. The owner benefits from limited liability.

Sole traders

Anwar runs a sole proprietorship and earns yearly profits of $24000. He chooses to bring Dilip in as a partner. They agree that Anwar will be paid a salary, while profits and losses are to be divided equally. The projected appropriation account for the partnership’s first year of trading is shown. By what amount will Anwar’s total income rise?

Partnerships

Hassan is a trader. Over the financial year, he took goods from the business for his own personal use. How should he record this?

Sole traders

Kasi and Ravi are partners. In the financial statements for the year ended 31 August 2021, Ravi received interest on capital and interest on loan, and interest on drawings was deducted from him. Which entries should be recorded in Ravi’s current account?

Partnerships

BCD Limited gave the information below. ordinary shares $300000 retained earnings $200000 debentures $170000 What are the equity and the capital employed?

Limited companies

CD Limited’s issued share capital is made up of ordinary shares. Retained earnings stood at $86000 on 1 September 2020 and at $88500 on 31 August 2021. Over the year, the company earned a profit of $26000 and transferred $5000 to general reserve. What total ordinary share dividend was paid during the year?

Limited companies

A sports club was set up on 1 August 2020. In the year ending 31 July 2021, the club bought equipment with a cost of $5000, and payment was made by cheque. In which of the club’s financial statements would this be recorded?

Clubs and societies

Which item is not included in the prime cost of a manufacturing business?

Manufacturing accounts

Thato’s work in progress had a higher value at the end of the year than at the start. This was shown in his financial statements. What effect did this have on the cost of production and the cost of sales?

Manufacturing accounts

What are the advantages of maintaining a complete set of accounting records? 1 Financial statements will contain no errors. 2 Fraudulent entries cannot be made. 3 Decision-making can be better informed. 4 Profit can be calculated more accurately.

Incomplete records

Beth gave the information below. Net assets on $1\ \text{January}$: $\$28\,000$ Net assets on $31\ \text{December}$: $\$24\,000$ During the year, her drawings totalled $\$3000$. What profit or loss did Beth make for the year?

Sole traders

In Roshan’s first year of trading, his sales totalled $\$55\,000$. His gross profit margin was $20\%$. The closing inventory was $\$3200$. What were the purchases for the year?

Valuation of inventory

What information is needed to calculate the return on capital employed for a sole trader?

Calculation and understanding of accounting ratios

Where are the accounts of credit suppliers kept?

Control accounts

Which measure gives the clearest indication of a business’s liquidity?

Calculation and understanding of accounting ratios

A trader gave the information below for the year ended $31\ \text{May}\ 2021$. Trade payables at $1\ \text{June}\ 2020$: $\$12\,250$ Trade payables at $31\ \text{May}\ 2021$: $\$42\,000$ Credit purchases during the year: $\$319\,375$ What was the trade payables turnover (days) for the year ended $31\ \text{May}\ 2021$?

Calculation and understanding of accounting ratios

A business gave the following information about its gross margin. Year 1: $40\%$ Year 2: $38\%$ Year 3: $35\%$ What might account for the changes in the gross margin?

Interpretation of accounting ratios

Which of the following is not a limitation of inter-firm comparison?

Inter-firm comparison

Why would a supplier want to examine the financial statements of a credit customer?

Interested parties

What does the objective of understandability assume users of financial statements have?

Accounting principles

Which document does a trader send to remind a credit customer that payment is due?

Business documents

What is the purpose of a cheque counterfoil?

Business documents

Farouk sells goods on credit. The bank dishonoured a cheque from Khalid, who is a credit customer. How should Farouk record this?

Books of prime entry

Tumelo supplies goods on credit. The trading conditions are shown below. List price: $200 per unit Credit period: 60 days Trade discount: 15% if 10 units or more are purchased Cash discount: 3% if the debt is paid within one month A credit customer bought 20 units and settled the debt within 15 days. What was the total of the invoice?

Business documents

Jane bought goods and settled the payment by credit transfer. In Jane’s accounting records, how ought this transaction to be entered?

Books of prime entry

What does a trial balance show?

The trial balance

Which statement is the correct one?

Accounting principles

A sales invoice worth $800 was entered wrongly in the sales journal as $1800. What effect did this mistake have on the trial balance?

The trial balance

A standing order used to pay rent has not been recorded in the accounting records of a business. Which statement is correct?

Bank reconciliation

On 1 October 2021, a business’s bank statement showed a credit balance of $2690. By that date, cheques amounting to $850 had still not been presented for payment. What was the bank balance in the cash book on 1 October 2021?

Bank reconciliation

A trader has acquired new business premises. What are examples of capital expenditure?

Capital and revenue expenditure and receipts

At the start of year 1, two companies each bought a motor vehicle for $10000. Company G applied the straight-line method of depreciation at 15% per annum, whereas Company H applied the reducing balance method at 20% per annum. What was the difference between the depreciation charge for year 2 for the two companies?

Accounting for depreciation and disposal of non-current assets

By the close of the financial year, Mui had rent paid in advance of $1500. How should this be recorded?

Other payables and other receivables

When Lucy had drawn up the draft financial statements at the close of her first year of trading, she found two mistakes. 1 Inventory that had been damaged had been recorded at cost price, $340. It was expected to be sold for $180. 2 100 items that were expected to sell at $12 each had been recorded at their cost price of $7 each. Carriage inwards of $1 for each item had not been added to the cost. What effect did these mistakes have on gross profit?

Valuation of inventory

Which option is an advantage, and which option is a disadvantage, of operating as a sole trader?

Sole traders

What items are included in the capital and liabilities section of a business’s statement of financial position?

Sole traders

John keeps a complete set of accounting records. Why does he also produce a statement of financial position?

Interested parties

Which equations can be used for the accounting equation?

Accounting principles

The owner of a sole trader business settled the business overdraft with his own personal money. In what way was the statement of financial position affected?

Sole traders

Hassin realised that he needed assistance to manage his business. He chose to bring in a partner instead of hiring an assistant. Why did he choose to bring in a partner?

Partnerships

Anwar runs a sole trader business and earns annual profits of $24000. He chooses to take Dilip in as a partner. They agree that Anwar will be paid a salary, and that profits and losses will be split equally. The projected appropriation account for the partnership’s first year of trading is: profit for the year $50000 salary Anwar $10000 profit available for distribution $40000 By what amount will Anwar’s total income rise?

Partnerships

BCD Limited gave the information shown below. ordinary shares $300000 retained earnings $200000 debentures $170000 What are the amounts of equity and capital employed?

Limited companies

CD Limited’s issued share capital is made up of ordinary shares. Retained earnings stood at $86000 on 1 September 2020 and at $88500 on 31 August 2021. During the year, the company earned a profit of $26000 and transferred $5000 to general reserve. What total ordinary share dividend was paid during the year?

Limited companies

A sports club was established on 1 August 2020. For the year ended 31 July 2021, the club bought equipment costing $5000 and paid by cheque. In which of the club’s financial statements would this be shown?

Clubs and societies

A sports club has 100 members, and the annual subscription is $60$. For the year ended 31 August 2021: 12 members settled unpaid subscriptions from the earlier financial year. 10 members paid their subscriptions in advance for the next financial year. At 31 August 2021, the subscriptions for the current financial year were still unpaid by 8 members. Calculate the total amount received from members during the year ended 31 August 2021?

Clubs and societies

Beth gave the information below. Net assets on 1 January stood at $28000$ and on 31 December they stood at $24000$. Her drawings for the year totalled $3000$. What profit or loss did Beth make for the year?

Sole traders

In Roshan’s first year of trading, sales amounted to $55000$. His gross profit margin was $20\%$. Closing inventory was $3200$. Calculate the purchases for the year.

Valuation of inventory

What information is needed to calculate the return on capital employed for a sole trader?

Calculation and understanding of accounting ratios

Goods bought on credit from Zamir were sent back by Ashwin. Which entries ought Zamir to make in order to record this?

Books of prime entry

Which measure gives the clearest indication of a business’s liquidity?

Calculation and understanding of accounting ratios

A business gave the following details about its gross margin. Year 1: $40\%$ Year 2: $38\%$ Year 3: $35\%$ What might account for the changes in gross margin?

Interpretation of accounting ratios

Sam and Rob each run a trading business. The income for both businesses comes only from selling goods. They gave the information below for the year ending 30 June 2020. Sam: return on capital employed $12\%$, gross margin $25\%$, profit margin $14\%$, current ratio $2.8:1$. Rob: return on capital employed $10\%$, gross margin $30\%$, profit margin $12\%$, current ratio $1.2:1$. Which statement is right?

Interpretation of accounting ratios

Why would a business owner want to review his financial statements at the end of the year?

Interested parties

Charlie works as a car dealer. Joe wanted a new car, so he visited Charlie’s car showroom. On Monday Joe took a car out for a test drive and chose to buy it. On Tuesday Joe made arrangements to pay for the car by cheque. On Wednesday Joe picked up the car and was given an invoice. On Thursday Joe’s cheque was cleared by the bank. On which day was Charlie able to recognise the profit on the sale?

Accounting principles

Which accounting objective requires financial information to be available in time for a decision to be taken?

Accounting principles

In her first financial year, a trader paid $1800 for insurance and $3200 for rent. By the end of the financial year, she had transferred insurance of $1500 and rent of $3600 to the income statement. What do the balances left on the accounts at the end of the financial year show?

The trial balance

Leah purchased goods worth $8000 with a 15% trade discount. She later sent back half of the goods because they were faulty. Which document did Leah issue to the supplier for the returned goods?

Business documents

What purpose is a cheque counterfoil used for?

Business documents

Farouk sells goods on credit. Khalid, who is a credit customer, gave a cheque that the bank later dishonoured. How should Farouk record this?

Irrecoverable debts and provision for doubtful debts

Why would a supplier provide trade discount?

Business documents

Ann keeps a petty cash book under the imprest system. Which statement is not correct?

Books of prime entry

Why would a trader work out the profit made by his business?

Interested parties

At each year-end, PT Limited moves 20% of the profit for the year into the general reserve. Draft financial statements were drawn up for the year ended 30 September 2021. It was then found that the inventory at 30 September 2021 had been overstated by $1500. What effect did correcting this error have on retained earnings and general reserve at 30 September 2021?

Correction of errors

Both the bank column in a trader’s cash book and the bank statement showed credit balances. A reconciliation showed these differences: uncredited cheque $200 bank charges not entered in the cash book $10 What difference was there between the balance in the bank column of the cash book and the balance on the bank statement?

Bank reconciliation

What is one reason for drawing up a sales ledger control account?

Control accounts

At the start of year 1, each of two companies bought a motor vehicle for $10000. Company G applied the straight-line method of depreciation at a rate of $15\%$ per annum, whereas Company H applied the reducing balance method at a rate of $20\%$ per annum. What is the difference between the depreciation charges for year 2 for the two companies?

Accounting for depreciation and disposal of non-current assets

Amit’s financial year ends on 31 December. The sales ledger for him included the account below. (Dipak account table shown) What is represented by the entry on 21 November?

Business documents

Sally wanted to raise the balance in the provision for doubtful debts account at the close of the financial year. In what way should this increase be recorded?

Irrecoverable debts and provision for doubtful debts

The following mistakes were discovered after a statement of financial position had been drawn up. 1. A loan due for repayment in two years’ time had been shown as a current liability. 2. A provision for doubtful debts ought to have been made. What effect will correcting these mistakes have?

Correction of errors

John keeps a complete set of accounting records. Why does he also draw up a statement of financial position?

Interested parties

What advantages come from operating as a sole trader?

Sole traders

Anwar is a sole trader who makes annual profits of $24000. He chooses to bring Dilip in as a partner. They agree that Anwar will be paid a salary, and that profits and losses will be split equally. The forecast appropriation account for the partnership’s first year of trading is shown. By how much will Anwar’s total income rise?

Partnerships

Hassan is a trader. In the financial year, he withdrew goods from the business for personal use. How should he record this?

Sole traders

Kasi and Ravi are partners in a partnership. The financial statements for the year ended 31 August 2021 showed that Ravi had earned interest on capital and interest on loan, and had been charged interest on drawings. Which entries should be recorded in Ravi’s current account?

Partnerships

BCD Limited gave the following information. What were the equity and the capital employed?

Limited companies

The issued share capital of CD Limited is made up of ordinary shares. Retained earnings stood at $86000 on 1 September 2020 and at $88500 on 31 August 2021. The company earned a profit of $26000 during the year and transferred $5000 to general reserve. What total ordinary share dividend was paid during the year?

Limited companies

A sports club was established on 1 August 2020. In the year ended 31 July 2021, the club bought equipment costing $5000 and paid for it by cheque. In which of the club’s financial statements would this be shown?

Clubs and societies

Which item is not included in the prime cost of a manufacturing business?

Manufacturing accounts

Thato’s work in progress had a higher value by the end of the year, and this was shown in his financial statements. What effect did this have on the cost of production and the cost of sales?

Manufacturing accounts

What benefits come from maintaining a complete set of accounting records?

Incomplete records

Beth gave the details below. Net assets on 1 January: $28000$ Net assets on 31 December: $24000$ Her drawings for the year were $3000$. What was Beth’s profit or loss for the year?

Sole traders

In Roshan’s first year of trading, his sales amounted to $55000$. His gross profit margin was $20\%$. The closing inventory stood at $3200$. What were the purchases for the year?

Sole traders

Which data are needed to calculate the return on capital employed for a sole trader?

Calculation and understanding of accounting ratios

Where are the accounts kept for suppliers who extend credit?

Control accounts

Which measure provides the clearest indication of a business’s liquidity?

Interpretation of accounting ratios

For the year ending 31 May 2021, a trader supplied the details below. Trade payables at 1 June 2020: $12250$ Trade payables at 31 May 2021: $42000$ Credit purchases during the year: $319375$ What was the trade payables turnover (days) for the year ending 31 May 2021?

Calculation and understanding of accounting ratios

A business gave the following details about its gross margin. Year 1: $40\%$ Year 2: $38\%$ Year 3: $35\%$ What might account for the changes in the gross margin?

Interpretation of accounting ratios

Which of the following is not a limitation of inter-firm comparison?

Inter-firm comparison

Why might a supplier want to examine the financial statements of a customer who buys on credit?

Interested parties

What does the objective of understandability presume users of financial statements will have?

Accounting principles

Which document does a trader send out to remind a customer buying on credit that payment is now due?

Business documents

What purpose does a cheque counterfoil serve?

Business documents

Farouk sells goods on credit. A cheque issued by Khalid, who is a credit customer, was dishonoured by the bank. In what way should Farouk record this?

Bank reconciliation

Tumelo sells goods on credit, and the terms of trade are shown below. list price: $200 per unit credit period: 60 days trade discount: 15% when 10 units or more are bought cash discount: 3% if the debt is settled within one month A credit customer bought 20 units and cleared the debt after 15 days. What was the total of the invoice?

Business documents

Jane bought goods and settled the payment by credit transfer. In Jane’s accounting records, how ought this transaction to be entered?

Books of prime entry

What does a trial balance display?

The trial balance

Shiv trades in goods. His financial year finishes on 31 August. He does not keep a complete set of accounting records, but he was able to supply the following details for the year ended 31 August 2021. Total revenue $320 000 Mark-up rate 25% Bank account summary for the year ended 31 August 2021 Assets and liabilities details 1 September 2020 / 31 August 2021 Inventory at cost $23 500 / $ Trade receivables $22 000 / $25 900 Expenses owing $- / $400 Trade payables $32 600 / $29 600 Equipment at net book value $- / $12 800 Premises at cost $90 000 / $90 000 During the year, Shiv took $900 out for a family holiday. He had entered this in the expenses. On 31 August 2021 Shiv decided to create a provision for doubtful debts of 3% of trade receivables.

Incomplete records

Jas runs a printing business and has recently made several expenditures connected with her premises.

Accounting for depreciation and disposal of non-current assets

Anil works as a trader. When he drew up the trial balance on 31 December 2020, the totals did not match. Debits were $5140 more than credits. The mistakes identified later were: 1 The sales account had been undercast by $7100. 2 Sales returns of $520 had been entered as a credit in the purchases account. The correct entry had already been made in the customer’s account. 3 Bank charges of $320 had been entered correctly in the cash book, but no entry had been made in the bank charges account. 4 A cheque refund of $600 for insurance overpaid had been posted to the wrong side of the bank account, and no entry had been made in the insurance account.

Correction of errors

Karishma owns and operates her own business. The balances shown in her books on 1 October 2020 were as follows. Insurance account $1700 prepaid Electricity account $1800 owing During the financial year ended 30 September 2021 Karishma made these cheque payments. Insurance payments: 7 February 2021 $3400 13 August 2021 $3500 Electricity payments: 14 October 2020 $1800 24 January 2021 $1800 26 May 2021 $1800 A refund of $300 for insurance overpaid was received by bank transfer on 28 February 2021. The insurance payment made on 13 August 2021 covered five months up to 31 December 2021. At 30 September 2021, electricity owing amounted to $2000.

Other payables and other receivables

VL Sports Club's financial year finishes on 31 December. The treasurer supplied the following receipts and payments details for the year ending 31 December 2020. Receipts: Subscriptions $19 200; Competition receipts $7300; Dinner dance ticket sales $6500. Payments: Competition prizes $4100; Dinner dance costs $6200; Equipment $12 000; General expenses $11 500. The treasurer additionally supplied the following details. 1 January 2020 / 31 December 2020 Equipment at net book value $23 000 / $30 000 General expenses owing $400 / $500 Subscriptions in arrears $700 / $300 Subscriptions in advance $1100 / $900 Of the subscriptions in arrears on 1 January 2020, $80 had still not been settled by 31 December 2020 and must be written off as irrecoverable.

Clubs and societies

Ayesha trades as a business and keeps a complete set of accounting records, then prepares control accounts at the end of every month. She supplied the following figures for August 2021. On 1 August Sales ledger control account debit balance $9800 Sales ledger control account credit balance $420 Purchases ledger control account credit balance $7700 Monthly totals Credit sales $88 850 Credit purchases $55 400 Cash purchases $1860 Receipts from customers $82 100 Payments to credit suppliers $50 600 Discount received $600 Discount allowed $900 Irrecoverable debt written off $300 Provision for doubtful debts $450 Sales returns $2400 Interest charged to customer on overdue account $90 Contra between sales ledger and purchases ledger $2920 The sales ledger control account credit balance brought down on 1 September 2021 was $350.

Control accounts

Jabir runs an electrical wholesale business. The balances below were listed in his books on 30 September 2021. Inventory $8000 Purchases $109 000 Trade payables $11 600 Revenue $160 000 Trade receivables $22 600 Operating expenses $35 200 The inventory on 1 October 2020 stood at $11 000. Every sale and purchase was made on credit.

Calculation and understanding of accounting ratios

On 31 July 2021, KA Limited, a manufacturer of garden tools, supplied the following information. Inventory 1 August 2020 Raw materials $5820 Work in progress $1750 Finished goods $12 360 Purchases Raw materials $34 200 Finished goods $3900 Carriage on purchases Raw materials $410 Finished goods $80 Direct wages $67 200 Indirect factory wages $24 000 Factory machinery at cost $47 000 Provision for depreciation of factory machinery $11 000 Factory general overheads $16 400 Rates $5300 Inventory 31 July 2021 Raw materials $6030 Work in progress $2780 Finished goods $10 340 Revenue $223 000 Additional information 1 On 31 July 2021 rates, $500, were prepaid. Rates are to be apportioned 75% factory, 25% office. 2 On 31 July 2021 factory general overheads, $230, were accrued. 3 Factory machinery is to be depreciated at 20% per annum using the reducing balance method.

Manufacturing accounts

Nikita is a trader. Her trial balance totals at 30 June 2021 failed to agree. Debits were higher than credits by $2600$, so Nikita opened a suspense account. The errors discovered afterwards were as follows. 1 Insurance of $2500$ was recorded as $4500$ in the insurance account. The correct amount had already been entered in the cash book. 2 The $500$ total in the discount received column of the cash book was posted to the discount allowed account in the general ledger. 3 Credit sales of $1400$ to Kajal were entered correctly in the sales account, but Kajal’s account was debited with $1000$. 4 A cheque for $700$ received from Anisah was entered correctly in the cash book, but it was credited to Aisha’s account.

Correction of errors

Simon runs a business that sells office stationery. On 1 January 2019, he owned two delivery vehicles that had been bought on 1 January 2018. Delivery vehicle A cost $30 000 and delivery vehicle B cost $25 000. Simon applies the straight-line method to depreciate the delivery vehicles. A rate of 20% per annum on cost is used, with the rate applied for every part of the year that the delivery vehicles are owned. Because business declined, delivery vehicle B was sold on 31 March 2020 and a cheque for $10 350 was received. Delivery vehicle A was still being used at the end of 2020.

Accounting for depreciation and disposal of non-current assets

Shiv trades as a trader. His financial year finishes on 31 August. He does not keep a complete set of accounting records, but he was able to supply the following details for the year ended 31 August 2021. Total revenue $320000 Mark-up 25% Summary of the bank account for the year ended 31 August 2021 Opening balance $49000 Cash sales $3700 Money received from trade receivables $312400 Expenses $34000 Drawings $4200 Payments to trade payables $257700 Equipment $16000 Closing balance $53200 Assets and liabilities at the start and end 1 September 2020 / 31 August 2021 Inventory at cost $23500 / ? Trade receivables $22000 / $25900 Expenses owing $- / $400 Trade payables $32600 / $29600 Equipment at net book value $- / $12800 Premises at cost $90000 / $90000 During the year Shiv took $900 out for a family holiday, but he had recorded this within expenses. On 31 August 2021 Shiv chose to set up a provision for doubtful debts of 3% of trade receivables.

Incomplete records

Jas runs a printing business and has recently paid out several expenses connected with her premises.

Capital and revenue expenditure and receipts

Anil is a trader. The totals on the trial balance he prepared on 31 December 2020 failed to agree. Debit totals were $5140 greater than credit totals. The following mistakes were later found. 1 The sales account had been undercast by $7100. 2 Sales returns of $520 had been posted as a credit to the purchases account. The correct entry had already been made in the customer’s account. 3 Bank charges of $320 had been entered correctly in the cash book, but had not been entered in the bank charges account. 4 A cheque refund of $600 for insurance overpaid had been recorded on the wrong side of the bank account and no entry had been made in the insurance account.

Correction of errors

Karishma owns and manages her own business. On 1 October 2020, the balances in her books showed the following. Insurance account $1700 prepaid Electricity account $1800 owing In the financial year ending 30 September 2021, Karishma made these cheque payments. Insurance payments: 7 February 2021 $3400; 13 August 2021 $3500 Electricity payments: 14 October 2020 $1800; 24 January 2021 $1800; 26 May 2021 $1800 A refund of $300 for insurance overpaid was received by bank transfer on 28 February 2021. The insurance paid on 13 August 2021 covered a five-month period to 31 December 2021. At 30 September 2021, $2000 was still owing for electricity.

Other payables and other receivables

The financial year of VL Sports Club finishes on 31 December. The treasurer supplied the following receipts and payments information for the year ended 31 December 2020. Receipts: Subscriptions $19200; Competition receipts $7300; Dinner dance ticket sales $6500 Payments: Competition prizes $4100; Dinner dance costs $6200; Equipment $12000; General expenses $11500 The treasurer also supplied the following details. 1 January 2020 / 31 December 2020 Equipment at net book value $23000 / $30000 General expenses owing $400 / $500 Subscriptions in arrears $700 / $300 Subscriptions in advance $1100 / $900 From the subscriptions in arrears on 1 January 2020, $80 had still not been settled by 31 December 2020 and must be written off as irrecoverable.

Clubs and societies