Incomes and expenditures account for the year ended 31st Oct 2019. Calculate the surplus for the year.

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ScanSolve AI Tutor · Accepted Answer

Based on the image, I will prepare the Incomes and Expenditures Account for the year ended 31 October 20-9, correcting the calculations in your partial work. (Note: The data is for 20-9, not 2010, and this is an Incomes and Expenditures Account, not a Shop Income Statement.)

Calculate the adjusted Subscriptions for the year.
The subscriptions for the year are calculated by taking the cash received, adjusting for subscriptions outstanding at the beginning of the year (received in current year but for prior year), and adding subscriptions outstanding at the end of the year (for current year but not yet received).
$\text{Subscriptions for the year} = \text{Subscriptions received} - \text{Outstanding at 1 Nov 20-8} + \text{Outstanding at 31 Oct 20-9}$
$\text{Subscriptions for the year} = \$21,280 - \$380 + \$600 = \$21,500$
Determine the Loss from the Shop.
From the previous calculation (Shop Income Statement), the net loss from the shop was \100$.
Calculate Total Incomes.
Total Incomes = Subscriptions for the year - Loss from the Shop $\text{Total Incomes} = \$21,500 - \$100 = \$21,400$
Identify and sum up the Expenditures.
- Wages - Cricket Coach: \7,460$
- Rent: \3,150$
- General expenses: \3,800$
- Depreciation: \2,600(This value is taken from your partial work, as no depreciation rate was provided in the original problem.) $$ \text{Total Expenditures} = \7,460 + $3,150 + $3,800 + $2,600 = $17,010 $$
Calculate the Surplus for the year.
Surplus = Total Incomes - Total Expenditures $\text{Surplus for the year} = \$21,400 - \$17,010 = \$4,390$
Prepare the Incomes and Expenditures Account.
$\begin{array}{l r r} \multicolumn{3}{c}{\textbf{Millbrook Cricket Club}} \\ \multicolumn{3}{c}{\textbf{Incomes and Expenditures Account}} \\ \multicolumn{3}{c}{\textbf{For the Year Ended 31 October 20-9}} \\ \textbf{Incomes} & & \textbf{\$} \\ \quad \text{Subscriptions} & \$21,500 & \\ \quad \text{Less: Loss from the shop} & \underline{(\$100)} & \\ \text{Total Incomes} & & \$21,400 \\ & & \\ \textbf{Expenditures} & & \\ \quad \text{Wages - Cricket Coach} & \$7,460 & \\ \quad \text{Rent} & \$3,150 & \\ \quad \text{General expenses} & \$3,800 & \\ \quad \text{Depreciation} & \underline{\$2,600} & \\ \text{Total Expenditures} & & \underline{(\$17,010)} \\ & & \\ \textbf{Surplus for the year} & & \underline{\underline{\textbf{\$4,390}}} \\ \end{array}$
The surplus for the year ended 31 October 20-9 is \boxed{\text{\4,390}}$.

Incomes and expenditures account for the year ended 31st Oct 2019. Calculate the surplus for the year.

Step-by-step solution

Calculate the adjusted Subscriptions for the year.

Determine the Loss from the Shop.

Calculate Total Incomes.

Identify and sum up the Expenditures.

Calculate the Surplus for the year.

Prepare the Incomes and Expenditures Account.

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