This accounting problem is solved step by step below, with detailed explanations to help you understand the method and arrive at the correct answer.
ScanSolve AI 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.) Step 1: 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). Subscriptions for the year = Subscriptions received - Outstanding at 1 Nov 20-8 + Outstanding at 31 Oct 20-9 Subscriptions for the year = \21,280 - \380 + \600 = \21,500 Step 2: Determine the Loss from the Shop. From the previous calculation (Shop Income Statement), the net loss from the shop was \100. Step 3: Calculate Total Incomes. Total Incomes = Subscriptions for the year - Loss from the Shop Total Incomes = \21,500 - \100 = \21,400 Step 4: 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.) Total Expenditures = \7,460 + \3,150 + \3,800 + \2,600 = \17,010 Step 5: Calculate the Surplus for the year. Surplus = Total Incomes - Total Expenditures Surplus for the year = \21,400 - \17,010 = \4,390 Step 6: Prepare the Incomes and Expenditures Account. l r r 3cMillbrook Cricket Club \\ 3cIncomes and Expenditures Account \\ 3cFor the Year Ended 31 October 20-9 \\ Incomes & & \ \\ Subscriptions & \21,500 & \\ Less: Loss from the shop & (\100) & \\ Total Incomes & & \21,400 \\ & & \\ Expenditures & & \\ Wages - Cricket Coach & \7,460 & \\ Rent & \3,150 & \\ General expenses & \3,800 & \\ Depreciation & \2,600 & \\ Total Expenditures & & (\17,010) \\ & & \\ Surplus for the year & & \4,390 \\ The surplus for the year ended 31 October 20-9 is \4,390$. What's next?