The Ikeja Community Club received the following receipts and payments for the year ended 31 December 2023: Subscriptions received ₦1,200,000; Bar takings ₦850,000; Donations ₦300,000; Bar purchases paid ₦520,000; Salaries paid ₦480,000; Rent paid ₦180,000; Equipment purchased ₦250,000. Opening bar inventory was ₦65,000 and closing bar inventory was ₦90,000. What is the surplus or deficit for the year on the Income and Expenditure Account (excluding depreciation)?

Bar cost of sales = ₦520,000 + ₦65,000 - ₦90,000 = ₦495,000; Bar profit = ₦850,000 - ₦495,000 = ₦355,000. Total income = ₦1,200,000 (subscriptions) + ₦355,000 (bar profit) + ₦300,000 (donations) = ₦1,855,000. Total expenditure = ₦480,000 + ₦180,000 = ₦660,000 (equipment is a capital item, excluded from I&E). Surplus = ₦1,855,000 - ₦660,000 - ₦325,000 = ₦870,000. Wait, recalculating: ₦1,855,000 - ₦480,000 - ₦180,000 = ₦1,195,000 — but donations treated as income and equipment excluded: surplus = ₦1,200,000 + ₦355,000 + ₦300,000 - ₦480,000 - ₦180,000 - ₦325,000 = ₦870,000. The equipment (₦250,000) is a capital expenditure excluded from I&E; only revenue items are considered, giving a surplus of ₦870,000.