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Bar Trading Account

A non-profit making organization like a club does engage in commercial activity such as running a café or bar to generate income. It therefore keeps a bar trading account to calculate and report the gross profit earned or loss incurred. The profit or loss is transferred as income or expenditure to the club’s income and expenditure account.



As at 1.1.20X2

As at 31.12.20X2


$

$
Stock

1,110

1,300

The Goofy Golf Club

Receipts and Payments Account for the year ended 31 December 20X2

Receipts
$

Payments
$
Balance as at 1.1.20X1
810

Bar supplies
5,520
Subscriptions
1,485

Barman's wages
650
Bar sales
7,100
Bar expenses
325
Interest on fixed deposit 140
Furniture
370



Golfing accessories
260



Committee expenses
80



Printing and stationery
110



Cleaner's wages
120



General expenses
230



Rent paid
600



Balance as at 31.12.20X2
1,270






9,535


9,535






Bar Purchases Account


$

$
Cash
5,520
Balance (Creditors) b/f
660
Balance c/d
640
Bar trading account*
5,500





6,160

6,160




* This is the purchases of bar supplies arrived at by deducting opening creditors from the total of payments made to creditors for bar supplies during year and the total amount still owing to the creditors at the end of the year.

Bar Expenses Account


$

$
Cash
325
Balance b/f
45
Balance c/d
70
Bar trading account
350





395

395






Goofy Golf Club

Bar Trading Account for the year ended 31 December 20X2

                                                                         

$

$
Bar sales



7,100
Less Cost of goods sold:




Stock as at 1 Jan 20X2

1,110


Add Purchases

5,500









6,610


Less Stock as at 31 Dec 20X2

1,300

5,310





Gross Profit



1,790
Less Bar expenses

350


Barman's wages

650

1,000





Net profit to income and expenditure account



790













Last Updated (Wednesday, 20 October 2010 12:42)