The treasurer of Manchester United Football Club has prepared a receipts and payments statement. Unam Football Club Receipts and Payments Statement for the year ended 31 December 2019 Receipts Payments Bank balance 01.01.2018 1 000 Payment for bar supplies 5 250 Subscription : Wages: Groundsman 2450 2018 arrears 350 Wages: Barman 2100 2019 18450 Bar expenses 1720 2020 in advance 220 Repairs to stand seat 1125 Bar sales 10,500 Ground maintenance 1360 Donations received 480 Secretary's expenses 1520 Transport Expenses 2640 Telephone Expenses 3650 Bank Balance 31.12.2019 9185 31000 31000 Notes: 31.12.2018 31.12.2019 1. $ $ Bar Inventory 2 550 3 250 Bar Supplies – Owing 1 880 1 950 Bar Expense – Owing 120 180 Transport Cost - Owing 0 195 2. The land and football stands were valued on 31 December 2018 at Land N$ 22 100; Football stands N$ 14 500; the stands are to be depreciated by 10 percent per annum. Furniture and fittings on 31 December 2018 were valued at N$13 500 and are to be depreciated at 10 percent per annum. 3. Subscription owing by members amounted to N$ 350 on 31 December 2018, and N$420 On 31 December 2019. Required: a) Income and Expenditure Statement for the year ended 31 December 2019.
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
The treasurer of Manchester United Football Club has prepared a receipts and payments statement.
Unam Football Club
Receipts and Payments Statement for the year ended 31 December 2019
| Receipts | Payments | ||
| Bank balance 01.01.2018 | 1 000 | Payment for bar supplies | 5 250 |
| Subscription : | Wages: Groundsman | 2450 | |
| 2018 arrears | 350 | Wages: Barman | 2100 |
| 2019 | 18450 | Bar expenses | 1720 |
| 2020 in advance | 220 | Repairs to stand seat | 1125 |
| Bar sales | 10,500 | Ground maintenance | 1360 |
| Donations received | 480 | Secretary's expenses | 1520 |
| Transport Expenses | 2640 | ||
| Telephone Expenses | 3650 | ||
| Bank Balance 31.12.2019 | 9185 | ||
| 31000 | 31000 |
Notes:
31.12.2018 31.12.2019
1. $ $
Bar Inventory 2 550 3 250
Bar Supplies – Owing 1 880 1 950
Bar Expense – Owing 120 180
Transport Cost - Owing 0 195
2. The land and football stands were valued on 31 December 2018 at Land N$ 22 100; Football stands N$ 14 500; the stands are to be
3. Subscription owing by members amounted to N$ 350 on 31 December 2018, and N$420 On 31 December 2019.
Required:
a) Income and Expenditure Statement for the year ended 31 December 2019.
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