ACCOUNTS OF NON-PROFIT MAKING ORGANISATION

Question One
The following was extracted from the book of CAS Gift Club for the year ended 31 st December,
1986.
Receipts Payments
₦ ₦
Subscription 6,900
Donations 9,600
Interest received 240
Salaries 2,250
Scholarship 2,220
Drugs for handicaps 2,070
Printing and stationery 510
Office furniture 3,090
Investment 4,500
Balance c/d _____ 2,100
16,740 16740
You are also informed as follows:
a. Subscriptions outstanding with member ₦300
b. Accrued expenses: ₦
Salaries 300
Scholarship 960
Drugs 180
Printing and stationery 240

You are required to prepare for the club:

i. Income and Expenditure account
ii. Statement of financial position as at 31st December, 1986.

Question Two

The receipts and payments accounts of Under 21 Youth Club for the year ended 31st December, 1991
is as follows:
Receipts: ₦ Payments: ₦
st
Balance 1 January, 1991 200 Bar supplies 2,850
Subscription received: Wages 350
For 1991 3,600 General expenses 400
For 1992 250 Printing and stationery 120
Receipts from bar 4,500 Equipment 350
Receipts from dance 500 Furniture and fittings 300
Sundry receipts 400 Repairs 200
_____ Balance 31/12/1991 4,880
9,450 9,450

You are given the following additional information:

1/1/91 31/12/91
₦ ₦
Equipment 2,500 2,850
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 Furniture and fittings 2,000 2,300
Inventory 1,200 3,200
Bar supplies 2,400 5,600

You are required to prepare:

i. Statement of affairs as at January, 1991
ii. Bar trading account
iii. Income and expenditure account for the year ended 31st December,1991.
iv. Income Statement as at 31st December, 1991

Question Three
The treasurer of Anan Football Club presents to you the following information relating to the
financial transaction of the club for the year ended 31st December, 1991.
Receipts and Payment Account for the year ended 31st Dec ember, 1993
Receipt : ₦ Payment : ₦
Bank balance 1/1/93 1,048 Payments for bar supplies 7,924
Subscription received for: Wages of Groundsman and
1992 110 Assistant 1,878
1993 2,472 Barmen 1,248
1994 80 Bar expenses 468
Bar Sales 11,256 repairs to stand 238
Donations received 240 Ground upkeep 458
Secretarial expenses 276
Transport costs 610
______ Bank balance 31/12/93 2,106
15,206 15,206
Additional information 31/12/92 31/12/93
a. Inventory ₦992 ₦1,116
Bar expenses owing ₦ 50 ₦ 72
Owing for bar supplies ₦588 ₦ 680
Transport cost owing - ₦ 130
b. The value of fixed assets as a t 31st December, 1992 was:
Land ₦8,000
Football stands ₦4,000
Equipment ₦1,100
c. Depreciation is to be charged on straight line method as follows:
Football stands 10% per annum
Equipment 20% per annum
d. Subscription owing by members were as follows:
31/12/92 ₦110
31/12/93 ₦132

You are required to calculate:

i. Accumulated fund as at 31st December, 1992
ii. Bar Trading and Expenditure account for the year ended 31st December, 1993
iii. Balance Sheet as at that date.

Question Four
The following information was obtained from the book of Family Support Club for the year ended
30th September, 1995:
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 ₦ ₦
Cash in hand 1/1/94 450 Staff salary 9,000
Balance at bank 1/10/94 4,800 General repairs and maintenance 4,200
Transfer from bank deposit Transfer to bank deposit account 13,500
account 13,050 Purchase of Equipment 15,000
Members subscription 3,960 Other expenses 3,000
Donations 20,400 Insurance 600
Easter picnic 10,200 Easter picnic expenses 5,400
Cash in hand c/d 660
_____ Balance at bank c/d 1,500
52,860 52,860
Additional information:
a. The net book value of fixed assets as at 30th September, 1994 was as follows:
Leasehold premises ₦72,000
Equipment ₦24,000
b. Provide for depreciation on fixed assets as follows:
Leasehold ₦3,000
Equipment ₦1,800
c. Bank deposit balance as at 30th September, 1994 was ₦24,360 interest of ₦900 has
been credited to the account during the year and was not included in the above receipts.
d. A donor of ₦7,500 had specifically requested that his donation should be used only for the
purchase of double bunk beds for the Day Care Centre. This purchase is yet to be made.
e. Other assets and liabilities were as follows:
30/09/94 30/09/95
₦ ₦
Creditors (repairs) 600 -
Creditors (expense) 450 540
Subscription (outstanding) 1,200 1,320
Insurance prepaid 150 180

You are required to prepare:

i. Statement of affairs as at 30th September, 1994
ii. Deposit account as at 30th September, 1995
iii. Income and expenditure account for the year ended 30th September, 1995.

Question Five
a. Mention three features of Not-for-profit making organizations.
b. Give two similarities and two differences between receipt and payment account and
an income expenditure account.

Question Six
a. Distinguish between subscription in advance and subscription in arrears.
b. List four features of an income and Expenditure accounts

Question Seven
The following is a summary of the Cash book of Agubiko Country Club:
N N
Balance (1/14/01) 23,700 Staff Wages 66,900

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 Members Subscriptions 178,600 Bar supplies 252,000
Entrance fees 16,000 Rent for 18 months (to 30/6/02) 36,000
Bar takings 284,000 Rates 14,000
Competition receipts 38,200 Secretary’s salary 15,600
Sundry receipts 400 Electricity and Telephone 68,500
Competition prizes 18,500
Deposit with Onyi Community
Bank 40,000
Balance (31/03/02) 29,400
_______ _______
540,900 540,900

Additional information:
a. The assets of the club as at 1st April 2001 were:
Furniture and equipment N240,000
Bar Inventory N 13,000
Prizes at hand N 4,000
Owing for bar supplies N 26,000
b. The assets of the club as at 31st March, 2002 were:
Bar Inventory N 15,000
Prizes N2,500
Owing for bar supplies N28,000
c. Subscription outstanding as at 31st March, 2002 totaled N5,000 subscription
received during the year under review included N3,500 in respect of the previous
year and N2,000 in respect of the year beginning 1st April, 2002.
d. Interest on deposit with Onyi Community Bank for the year 31st March, 2002,
amounting to N2,400 had not been received.
e. Provide for depreciation on furniture and equipment at 10%.

You are required to prepare:

i. Statement showing the accumulated fund as at 1st April, 2001.
ii. Income and expenditure account for the year ended 31st March, 2002.
iii. Statement of financial position as at that date.