Cambridge IGCSE Accounting 0452 — 2015 May/June Paper 1 · Variant 1

This document consists of 21 printed pages and 3 blank pages. IB15 06_0452_11/FP © UCLES 2015 [Turn over *8343525273* Cambridge International Examinations Cambridge International General Certificate of Secondary Education ACCOUNTING 0452/11 Paper 1 May/June 2015 1 hour 45 minutes Candidates answer on the Question Paper. No Additional Materials are required. READ THESE INSTRUCTIONS FIRST Write your Centre number, candidate number and name on all the work you hand in. Write in dark blue or black pen. You may use an HB pencil for any diagrams or graphs. Do not use staples, paper clips, glue or correction fluid. DO NOT WRITE IN ANY BARCODES. Answer all questions. You may use a calculator. Where layouts are to be completed, you may not need all the lines for your answer. The businesses mentioned in this Question Paper are fictitious. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question.

2 © UCLES 2015 0452/11/M/J/15 There are 10 parts to Question 1. For each of the parts (a) to (j) below there are four possible answers A, B, C and D. Choose the one you consider correct and place a tick (✓) in the box to indicate the correct answer. 1 (a) What is the purpose of accounting? A to ensure the cash book balance agrees with the bank statement B to know how long trade receivables take to pay C to prepare the financial statements of the business D to write up all the ledger accounts [1] (b) Where is discount received shown? A credit side of the purchases ledger control account B debit side of the purchases ledger control account C credit side of the sales ledger control account D debit side of the sales ledger control account [1] (c) Pedro spent $8410 buying a new vehicle. The invoice showed $ Vehicle 8000 Number plates 50 Insurance for 24 months 360 How much was the capital expenditure? A $8050 B $8180 C $8230 D $8360 [1]

3 © UCLES 2015 0452/11/M/J/15 [Turn over (d) Safir bought a machine for $10 000 and depreciated it at the rate of 30% per annum on the reducing (diminishing) balance basis. What was the net book value at the end of year 2? A $4000 B $4900 C $5100 D $6000 [1] (e) Albert maintains a provision for doubtful debts account. Where is the closing balance on the account included in the financial statements? A as an expense in the income statement B as a revenue in the income statement C in the current assets section of the statement of financial position D in the current liabilities section of the statement of financial position [1] (f) Why is inventory valued at net realisable value when this is lower than cost? A to calculate the rate of inventory turnover B to ensure the balancing of the statement of financial position C to prevent profit being recorded before it is earned D to recognise losses as soon as they are incurred [1]

4 © UCLES 2015 0452/11/M/J/15 (g) Abdul started a business by transferring his own vehicle to the business at a valuation of $9000 and introducing a sum of cash. In the first year of trading profit was $2000. At the end of the first year the balance on his capital account was $51 000. How much cash did Abdul introduce? A $40 000 B $44 000 C $58 000 D $62 000 [1] (h) A manufacturing business provided the following information. $ Opening inventory of finished goods 17 000 Closing inventory of finished goods 12 000 Cost of production for the year 100 000 Purchases of finished goods for the year 70 000 What was the cost of sales for the year? A $75 000 B $105 000 C $170 000 D $175 000 [1] (i) Agnes and Brian operate in similar businesses. They provide the following information. Agnes Brian Trade receivables collection period 31 days 40 days Which statement is true? A Agnes receives money from customers sooner than Brian. B Agnes pays her suppliers sooner than Brian. C Brian receives money from customers sooner than Agnes. D Brian pays his suppliers sooner than Agnes. [1]

5 © UCLES 2015 0452/11/M/J/15 [Turn over (j) When is accounting information relevant? A when it can be compared with information for other periods B when it can be understood by the users of the accounts C when it changes business decisions D when it is free from error and bias [1] [Total: 10]

6 © UCLES 2015 0452/11/M/J/15 2 (a) Complete the following table. Indicate with a tick () whether each item is an asset or a liability. The first item has been completed as an example. Asset Liability Office equipment  Prepaid rent Accrued wages Bank loan Inventory of goods for resale Inventory of stationery for office use Amount due to creditor [6] (b) Complete the following sentences using the word ‘debit’ or ‘credit’. An asset account has a balance. A liability account has a balance. An expense account has a balance. An income account has a balance. [4] (c) Give one example of an expense account. [1] (d) Name the financial statement in which expenses are recorded. [1] (e) Complete the following table. Enter the word ‘true’ or ‘false’ against each statement. The first has been completed as an example. Every transaction has a two fold aspect True Costs must be matched against related income Revenue can be recorded before it is earned Staff expertise can be recorded in the financial statements [3]

7 © UCLES 2015 0452/11/M/J/15 [Turn over Lamoudi has an accounting year end of 31 December. On 1 April 2013 he paid $1200, by cheque, for a year’s insurance starting on that date. On 1 April 2014 he paid $1440, by cheque, for insurance for twelve months to 31 March 2015. REQUIRED (f) Prepare Lamoudi’s insurance account for the year ended 31 December 2014. Balance the account and bring down the balance on 1 January 2015. Lamoudi Insurance account Date Details $ Date Details $ ….…. ……………..…..………. …..…. ……… ……………………… …..….. …….. ……………………… …..…. ….….. ………..…..………… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… ……... …..…. ………..……..……… …..…. ….…. ……………….……… …..…. …..…. ………..……..……… …..…. [5] (g) State one reason why a trader might prepare a trial balance. [1]

8 © UCLES 2015 0452/11/M/J/15 Ebenon, a sole trader, extracted the following balances from his books of account on 31 December 2014. $ Motor vehicles 38 000 Provision for depreciation of motor vehicles 10 000 Sales 190 000 Purchases 103 000 Rent 4 000 Wages and salaries 41 000 Sundry expenses 6 800 Drawings 23 000 Trade payables 5 000 Trade receivables 7 000 Bank overdraft 1 500 Cash 100 Purchase returns 600 Inventory 12 000 Capital ?

9 © UCLES 2015 0452/11/M/J/15 [Turn over REQUIRED (h) Prepare Ebenon’s trial balance at 31 December 2014. Ebenon Trial Balance at 31 December 2014 Debit $ Credit $ Motor vehicles Provision for depreciation of motor vehicles Sales Purchases Rent Wages and salaries Sundry expenses Drawings Trade payables Trade receivables Bank overdraft Cash Purchase returns Inventory Capital [8] (i) Give the date to which the inventory in the trial balance relates. [1] [Total: 30]

10 © UCLES 2015 0452/11/M/J/15 3 (a) Name two books of prime (original) entry which a trader may keep. In each case name a source document for that book. An example has been provided. Book of prime (original) entry Source document Cash book Cheque counterfoil [4] (b) State one reason why a trader might use books of prime (original) entry. [1] (c) Name the two accounts which are posted with the totals from a three column cash book. 1 2 [2] Abdoulaye received a cheque from Pierre which was subsequently dishonoured. REQUIRED (d) State what is meant by a dishonoured cheque. [1] (e) State how Abdoulaye recorded the dishonouring of the cheque. Account debited Account credited [2] (f) Name the statement prepared by Abdoulaye to ensure that his bank account is free from error. [1]

11 © UCLES 2015 0452/11/M/J/15 [Turn over Abdoulaye has a bank overdraft. REQUIRED (g) Explain what is meant by a bank overdraft. [2] (h) Complete the following table using a tick () to indicate whether Abdoulaye’s cash book and his bank statement have a debit or a credit balance. Debit balance Credit balance Cash book Bank statement [2] Abdoulaye withdrew $200 from the bank for personal use. REQUIRED (i) State how this is recorded in the books of account. Account debited Account credited [2] [Total: 17]

12 © UCLES 2015 0452/11/M/J/15 4 At 1 February 2014, Green Meadow Limited had the following shares and debentures. 250 000 ordinary shares of $0.50 each 100 000 8% preference shares of $1 each $50 000 6% debentures (2019) The following balances were extracted from the books on 31 January 2015. $ Retained earnings 65 000 Plant and equipment (at book value) 184 000 Motor vehicles (at book value) 87 000 Trade payables 43 000 Trade receivables 57 000 Inventory 63 000 Bank 2 000 debit Long term bank loan (5%) (taken out in 2013) 10 000 REQUIRED (a) Prepare the statement of financial position at 31 January 2015.

13 © UCLES 2015 0452/11/M/J/15 [Turn over Green Meadow Limited Statement of Financial Position at 31 January 2015 $ ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. ……………………………………………………………………….. …………….. [10]

14 © UCLES 2015 0452/11/M/J/15 Following additional information is available: 1 Retained earnings at 1 February 2014 were $51 500. 2 The interim ordinary dividend paid during the year was $0.04 per share. 3 The preference dividend was paid on time. REQUIRED (b) Calculate the profit for the year ended 31 January 2015. [4] (c) Calculate the profit from operations (profit before interest) for the year ended 31 January 2015. [4]

15 © UCLES 2015 0452/11/M/J/15 [Turn over (d) Calculate the return on capital employed (ROCE). [4] (e) State one reason why the directors would wish to know the ROCE. [1] (f) State why the directors chose to issue debentures rather than issue more ordinary shares. [1] [Total: 24]

16 © UCLES 2015 0452/11/M/J/15 5 Antoinette provided the following information. Revenue for the year ended 30 November 2014 $1000 Inventory at 1 December 2013 $60 Inventory at 30 November 2014 $40 Gross profit margin 40% Net profit margin 15% REQUIRED (a) Calculate the following for the year ended 30 November 2014. Gross profit Cost of sales Purchases Profit for the year Expenses [7] Antoinette’s brother, Louis, has a business selling similar type of goods. His gross profit margin is 40% and his net profit margin is 20%. REQUIRED (b) State one reason for the difference in the ratios. [1]

17 © UCLES 2015 0452/11/M/J/15 [Turn over (c) Calculate Antoinette’s inventory turnover in days. Round up your answer to the next whole day. [4] (d) Suggest two reasons why Louis’ inventory turnover is faster than Antoinette’s. 1 2 [2] (e) State two advantages to Antoinette of going into partnership with Louis. 1 2 [2] [Total: 16]

18 © UCLES 2015 0452/11/M/J/15 6 The Healthy Ways Sports Club provided the following information. At 31 December 2013 At 31 December 2014 $ $ Subscriptions in advance 100 50 Subscriptions in arrears 350 500 Trade payables for café supplies 590 820 Inventory of café supplies 600 800 Sports equipment at valuation 18 700 20 100 Accrued wages for sports club staff - 300 Receipts and payments during the year ended 31 December 2014 $ Receipts Subscriptions received 19 100 Café receipts 4 900 Payments Café supplies 3 710 New sports equipment 4 600 Staff wages – café 1 800 – sports club 7 200 Rent and insurance – sports club 4 800 Sundry expenses – sports club 1 850 REQUIRED (a) Prepare the subscriptions account for the year ended 31 December 2014. Balance the account and bring down the balances on 1 January 2015. Healthy Ways Sports Club Subscriptions account Date Details $ Date Details $ ….…. ……………..…..………. …..…. ……… ……………………… …..….. …….. ……………………… …..…. ….….. ………..…..………… …..…. …….. ………..…..………… …….. …….. ………..…..………… …….. …….. ………..…..………… …….. …….. ………..…..………… …….. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… ……... …..…. ………..……..……… …..…. ….…. ……………….……… …..…. …..…. ………..……..……… …..…. [6]

19 © UCLES 2015 0452/11/M/J/15 [Turn over (b) Prepare the total trade payables account for the year ended 31 December 2014 to determine the café purchases. Healthy Ways Sports Club Total trade payables account Date Details $ Date Details $ ….…. ……………..…..………. …..…. ……… ……………………… …..….. …….. ……………………… …..…. ….….. ………..…..………… …..…. …….. ………..…..………… …….. …….. ………..…..………… …….. …….. ………..…..………… …….. …….. ………..…..………… …….. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… …..…. …..…. ………..……..……… …..…. ….…. ……………………… ……... …..…. ………..……..……… …..…. ….…. ……………….……… …..…. …..…. ………..……..……… …..…. [4]

20 © UCLES 2015 0452/11/M/J/15 (c) Prepare the café income statement for the year ended 31 December 2014. Healthy Ways Sports Club Café Income Statement for the year ended 31 December 2014 $ $ ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. [6]

21 © UCLES 2015 0452/11/M/J/15 (d) Prepare the income and expenditure account for the year ended 31 December 2014. Healthy Ways Sports Club Income and Expenditure Account for the year ended 31 December 2014 $ $ ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. ………………………………………………………… …………….. …………….. [7] [Total: 23]

22 © UCLES 2015 0452/11/M/J/15 BLANK PAGE

23 © UCLES 2015 0452/11/M/J/15 BLANK PAGE

24 Permission to reproduce items where third-party owned material protected by copyright is included has been sought and cleared where possible. Every reasonable effort has been made by the publisher (UCLES) to trace copyright holders, but if any items requiring clearance have unwittingly been included, the publisher will be pleased to make amends at the earliest possible opportunity. To avoid the issue of disclosure of answer-related information to candidates, all copyright acknowledgements are reproduced online in the Cambridge International Examinations Copyright Acknowledgements Booklet. This is produced for each series of examinations and is freely available to download at www.cie.org.uk after the live examination series. Cambridge International Examinations is part of the Cambridge Assessment Group. Cambridge Assessment is the brand name of University of Cambridge Local Examinations Syndicate (UCLES), which is itself a department of the University of Cambridge. © UCLES 2015 0452/11/M/J/15 BLANK PAGE

® IGCSE is the registered trademark of Cambridge International Examinations. CAMBRIDGE INTERNATIONAL EXAMINATIONS Cambridge International General Certificate of Secondary Education MARK SCHEME for the May/June 2015 series 0452 ACCOUNTING 0452/11 Paper 1, maximum raw mark 120 This mark scheme is published as an aid to teachers and candidates, to indicate the requirements of the examination. It shows the basis on which Examiners were instructed to award marks. It does not indicate the details of the discussions that took place at an Examiners’ meeting before marking began, which would have considered the acceptability of alternative answers. Mark schemes should be read in conjunction with the question paper and the Principal Examiner Report for Teachers. Cambridge will not enter into discussions about these mark schemes. Cambridge is publishing the mark schemes for the May/June 2015 series for most Cambridge IGCSE®, Cambridge International A and AS Level components and some Cambridge O Level components.

Page 2 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 1 (a) C (b) B (c) A (d) B (e) C (f) D (g) A (h) D (i) A (j) A (1) mark each [Total: 10] 2 (a) Asset Liability Office equipment
Prepaid rent
(1) Accrued wages
(1) Bank loan
(1) Inventory of goods for resale
(1) Inventory of stationery for office use
(1) Amount due to creditor
(1) [6] (b) An asset account has a debit (1) balance. A liability account has a credit (1) balance. An expense account has a debit (1) balance. An income account has a credit (1) balance. [4]

Page 3 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (c) Any suitable answer e.g. insurance, telephone, wages etc. (1) [1] (d) Income statement (1) [1] (e) Every transaction has a two fold aspect True Costs must be matched against related income True (1) Revenue can be recorded before it is earned False (1) Staff expertise can be recorded in the financial statements False (1) [3] (f) Lamoudi Insurance account 2014 $ 2014 $ 1 Jan Balance b/d 300 (1) 31 Dec Income statement 1380 (1o.f.) 1 Apr Bank/Cash 1440 (1) Balance c/d 360 1740 1740 2015 1 Jan Balance b/d 360 (1) +1 for dates [5] (g) To check the arithmetical accuracy of the double entry (1) OR As a basis for the preparation of the financial statements/final accounts (1) [1]

Page 4 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (h) Ebenon Trial Balance at 31 December 2014 Debit $ Credit $ Motor vehicles 38 000 } Provision for depreciation of motor vehicles 10 000 }(1) Sales 190 000 } Purchases 103 000 }(1) Rent 4 000 } Wages and salaries 41 000 }(1) Sundry expenses 6 800 } Drawings 23 000 }(1) Trade payables 5 000 } Trade receivables 7 000 }(1) Bank overdraft 1 500 } Cash 100 }(1) Purchase returns 600 } Inventory 12 000 }(1) Capital 27 800 (1o.f.) 234 900 234 900 [8] (i) 1 January 2014 (1) [1] [Total: 30]

Page 5 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 3 (a) Book of prime (original) entry Source document Cash book Cheque counterfoil Any two of: Sales journal Sales returns journal Purchases journal Purchases returns journal General journal Petty cash book for (1) mark each Sales invoice Sales credit note issued Purchase invoice Credit note received/debit note issued Notification of debtor going bankrupt/other suitable answer Voucher for (1) mark each [4] (b) To avoid multiple entries in the ledger (1) Different books of prime entry can be maintained by different people (1) Acts as an aid for posting to the ledger by analysing a transaction into debit and credit entry (1) Helps to reduce the amount of detail in the ledger as only totals are posted to the ledger (1) Provides evidence of transactions since they are recorded from source documents (1) Helps in the auditing/tracking process/facilitates cross-referencing (1) Easy reference to source of a transaction (1) Helps in gathering and summarising of accounting information (1) Groups together similar types of transactions in one book in date order (1) Reduces number of entries in ledger (1) Max. 1 [1] (c) Discount allowed (1) Discount received (1) [2] (d) The debtor’s bank refused payment (1) [1] (e) Account debited Account credited Pierre (1) Bank (1) [2] (f) Bank reconciliation statement (1) [1] (g) Paying more from the bank account then there is in it (1). This means that the business owes the bank money (the bank is a current liability) (1). [2]

Page 6 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (h) Debit balance Credit balance Cash book
(1) Bank statement
(1) [2] (i) Account debited Account credited Drawings (1) Bank (1) [2] [Total: 17] 4 (a) Green Meadow Limited Statement of Financial Position at 31 January 2015 $ Non-current assets Plant and equipment 184 000 Motor vehicles 87 000 271 000 (1)* Current assets Inventory 63 000 Trade receivables 57 000 Cash and cash equivalents/Bank 2 000 122 000 (1)* Total assets 393 000 Capital and reserves (1) Ordinary share capital 125 000 (1) 8% preference share capital 100 000 (1) Retained earnings 65 000 (1) 290 000 Non-current liabilities (1) 6% Debentures (2019) 50 000 (1) Bank loan 10 000 (1) 60 000 Current liabilities Trade payables 43 000 (1)* Total liabilities 393 000 * indicates heading required for mark [10]

Page 7 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (b) $ Closing profit 65 000 Opening profit 51 500 13 500 (1) Add back: Ordinary dividend 10 000 (1) Preference dividend 8 000 (1) Profit for the year 31 500 (1o.f.) [4] (c) $ Profit for the year 31 500 (1o.f.) Add back: Bank interest 500 (1) Debenture interest 3 000 (1) Profit for the year 35 000 (1o.f.) [4] (d) (1o.f.) (1o.f.) (1o.f.) (1o.f.) 10% 100 000 60 000 290 000 35 = × + [4] (e) To compare with other businesses To compare with rate of finance cost on debentures etc. Any one for (1) mark [1] (f) To avoid dilution of control (1)/because debentures don’t have voting rights (1) Ensure existing owners retain control of business (1) Any one for (1) mark [1] [Total: 24] 5 (a) Gross profit $400 (1) Cost of sales $600 (1) Purchases 600 (1o.f.) – (60 – 40) (1) = $580 Profit for the year $150 (1) Expenses 400 (1o.f.) – 150 (1o.f.) = $250 [7] (b) The brother has better control of his expenses (1). The brother has a larger business and experiences economies of scale on overheads such as rent (1). The brother buys goods for resale at a lower price (1). The brother sells the goods at a higher price (1). Any one for (1) mark [1]

Page 8 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (c) (1o.f.) (1) (1o.f.) (1) days 31 30.42 365 600 50 = = × [4] (d) Increasing sales Decreasing inventory levels More efficient purchasing of inventory Change in type of goods sold Increase in business activity Lower inventory levels More sales activity Any two for (1) each [2] (e) Increase in finance Additional knowledge/skills/expertise Share risks Sharing of tasks and responsibilities Can discuss decision-making Losses can be shared between partners Any two for (1) each [2] [Total: 16] 6 (a) Healthy Ways Sports Club Subscriptions account 2014 $ 2014 $ 1 Jan Balance b/d 350 (1) 1 Jan Balance b/d 100 (1) 31 Dec Income and 19 300 (1o.f.) 31 Dec Bank/Cash 19 100 (1) expenditure a/c Balance c/d 50 Balance c/d 500 19 700 19 700 2015 2015 1 Jan Balance b/d 500 (1) 1 Jan Balance b/d 50 (1) [6] (b) Healthy Ways Sports Club Total trade payables account 2014 $ 2014 $ 31 Dec Bank/Cash 3710 (1) 1 Jan Balance b/d 590 (1) Balance c/d 820 31 Dec Purchases 3940 (1o.f.) 4530 4530 2015 1 Jan Balance b/d 820 (1) [4]

Page 9 Mark Scheme Syllabus Paper Cambridge IGCSE – May/June 2015 0452 11 © Cambridge International Examinations 2015 (c) Healthy Ways Sports Club Café Income Statement for the year ended 31 December 2014 $ $ Revenue/Sales 4900 (1) Inventory at 1 January 2014 600 (1) Purchases 3940 (1o.f.) 4540 Inventory at 31 December 2014 800 (1) 3740 1160 Staff wages 1800 (1) Loss for the year (640) (1o.f.) [6] (d) Healthy Ways Sports Club Income and Expenditure Account for the year ended 31 December 2014 $ $ Subscriptions 19 300 (1o.f.) Loss from cafe 640 (1o.f.) Staff wages (7 200 + 300) 7 500 (1) Rent and insurance 4 800 } Sundry expenses 1 850 } (1) Depreciation 18 700 + 4 600 (1) – 20 100 (1) 3 200 17 990 Surplus 1 310 (1o.f.) [7] [Total: 23]