Answer Scheme – Accounting for Non-Profit Organization

Tutorial Question 1

a)
Restaurant Account for the year ended 31 August 2022
RM RM
Sales 221,360
Less: Cost of goods sold
Opening inventory 32,500
Purchases 104,000
136,500
Less: Closing inventory (26,000) (110,500)
Gross profit 110,860
Less: Expenses
Restaurant staff wages (36,000)
Restaurant net profit 74,860

b)
Income and Expenditure Account for the year ended 31 August 2022
RM RM
Subscription (192,500 + 3,000 - 2,400) 193,100
Restaurant profit 74,860
267,960
Less: Expenditure
Rent and rate (13,000 + 1,860) (14,860)
Social club secretary salary (42,500)
Lighting and heating (16,240)
Insurance (35,000)
Telephone (45,500 - 2,000) (43,500)
General expenses (4,000)
Depreciation expenses - office equipment (3,150)
Depreciation expenses - fixture and fitting (42,500) (201,750)
Surplus 66,210
c)
Statement of Financial Position as at 31 August 2022
RM RM
Non-current assets
Office equipment 61,500
Less: Accumulated depreciation (30,000 + 3,150) (33,150) 28,350

Fixture and fittings 170,000

Less: Accumulated depreciation (100,000 + 42,500) (142,500) 27,500
55,850
Current assets
Inventory 26,000
Bank 79,990
Cash 250
Subscription in arrears 3,000
Telephone expenses prepaid 2,000
167,090
Liabilities
Subscription in advance 2,400
Rent and rates accrued 1,860

Accumulated fund:
Balance at 31 Aug 2022 96,620
Surplus 66,210
167,090
Answer Scheme – Accounting for Non-Profit Organization
Tutorial Question 2

Accumulated fund at 1 January 2022

RM RM
Assets
Land and buildings 56,000
Equipment 11,800
Inventory of refreshment 140
Bank 2,105
Subscription in arrears 1,105
71,150
Liabilities
Subscription in advance 125
Account payables 310 435
70,715

Subscription Account
RM RM
Balance b/d 1,105 Balance b/d 125
Income and expenditure 29,190 Bank (1,035 + 28,160 + 150) 29,345
Bad debts (1,105 - 1,035) 70
Balance c/d 150 Balance c/d 905
30,445 30,445
Balance b/d 905 Balance b/d 150

Refreshment Trading Account for the year ended 31 December 2022

RM RM
Sales 4,550

Less: Cost of goods sold

Opening inventory 140
Purchases (2,600 - 310 + 200) 2,490
2,630
Less: Closing inventory (270) (2,360)
Gross profit 2,190

Less: Expenses
Wages (2,000)
Refreshment net profit 190
 Income and Expenditure Account for the year ended 31 December 2022
RM RM
Subscription 29,190
Refreshment profit 190
Equipment hire receivable 305
Tennis court hire fees 4,090
33,775
Less: Expenditure
Wages (18,050 - 2,000) (16,050)
Insurance (1,825)
Maintenance (4,050)
General expenses (715)
Bad debts (70)
Depreciation expenses for equipment (11,800 + 9,050 x
20%) (4,170) (26,880)
Surplus 6,895

Statement of Financial Position as at 31 December 2022

RM RM
Non-current assets
Land and building 56,000
Equipment (11,800 + 9,050) 20,850
Less: Accumulated depreciation (4,170) 16,680
72,680
Current assets
Inventory 270
Bank 4,605
Subscription in arrears 905
78,460
Liabilities
Account payables 200
Subscription in advance 150

Accumulated fund:
Balance at 1 January 2021 70,715
Surplus 6,895
Donation 500
78,460
Answer Scheme – Accounting for Non-Profit Organization
Tutorial Question 3

Receipts and Payment Account

RM RM
Balance b/d 8,420 Purchase of refreshments 10,400
Sales of refreshment 18,200 Wages and salaries 72,200
Subscription received: Insurance 7,300
for 2021 4,140 Lighting and heating 2,860
for 2022 112,640 General expenses 16,200
for 2023 600 Purchases of new equipment 36,200
Donation 2,000 Balance c/d 840
146,000 146,000
Balance b/d 840

Subscriptions Account
RM RM
Balance b/d 4,420 Balance b/d 500
Income and expenditure acc 116,760 Bank (4,140 + 112,640 + 600) 117,380
Bad debts (4,420 - 4,140) 280
Balance c/d 600 Balance c/d 3,620
121,780 121,780
Balance b/d 3,620 600

Refreshment Trading Account for the year ended 31 December 2022

RM RM
Sales 18,200
Less: Cost of goods sold
Opening inventory 560
Purchases (10,400 - 1,240 + 800) 9,960
10,520
Less: Closing inventory (1,080) (9,440)
8,760
Less: Expenses
Wages (8,000)
Refreshment net profit 760
 Income and Expenditure Account for the year ended 31 December 2022
RM RM
Subscription 116,760
Refreshment profit 760
117,520
Less: Expenditure
Wages and salaries (72,200 - 8,000) (64,200)
Insurance (7,300)
Lighting and heating (2,860)
General expenses (16,200)
Bad debts (280)
Depreciation expenses (47,200 + 36,200 x 20%) (16,680) (107,520)
Surplus 10,000

Accumulated fund as at 1 January 2022

Assets RM RM
Premises 224,000
Equipment 47,200
Inventory 560
Subscription in arrears 4,420
Bank 8,420
284,600
Liabilities
Subscription in advance 500
Account payable 1,240 1,740
282,860

Statement of Financial Position as at 31 December 2022

RM RM
Non-current assets
Premises 224,000
Equipment (47,200 + 36,200) 83,400
Less: Accumulated depreciation (16,680) 66,720
290,720
Current assets
Inventory 1,080
Bank 840
Subscription in arrears 3,620
296,260
Liabilities
Subscription in advance 600
Account payable 800

Accumulated fund:
Balance as at 1 January 2021 282,860
Surplus 10,000
Donation 2,000
296,260