The following report was submitted by the treasurer of SoBSA for the year ended December 31, 2019. Financially the year was not a success, the balance at the bank on December 31 being GHC2,210 compared
with GHC2,730 on January 1. The Association’s office space remain in the books at cost price GHC45,000. The
loan received from SRC for the purchase of the office space which stood at GHC7,500 on January 1 has been
reduced this year by the repayment of GHC1,500. The Association also paid the year’s interest on the loan
amounting to GHC380.
Other items of expense during the year were as follows: Allowances to executives GHC11,810, Repairs and
maintenance GHC1,270; Correspondence GHC290. In addition, the allowances GHC210 due but not paid and
repairs GHC160 outstanding at December 31.
The Association’s furniture was worth GH5,700 on January 1 and should be depreciated at 10%. The Television
set acquired for the office on December GHC950 has helped in entertaining students. Other equipment at
January 1, was valued at GHC8,600 and this is not to be depreciated.
Dues received from students were GHC13,200 of which GHC1,200 related to the previous year while
GHC1,500 dues for the current year had not been received from students by December 31. The cost of snack
bar supplies was GHC8,250 and snack bar sales amounted to GHC10,790. The snack bar attendance’ wages
was GHC1,560. The dinner held on December 18 cost GHC3,000 but sales of tickets fetched GHC4,500.
From this report, prepare the income and expenditure account for the year ended December 31, 2019 and a
balance sheet as at that date.