{"id":3462,"date":"2023-10-05T10:27:00","date_gmt":"2023-10-05T10:27:00","guid":{"rendered":"http:\/\/localhost\/ecole9ja\/?p=3462"},"modified":"2023-10-05T10:33:08","modified_gmt":"2023-10-05T10:33:08","slug":"week-7-and-8-ss2-third-term-financial-accounting-notes","status":"publish","type":"post","link":"https:\/\/ecolebooks.com\/nigeria\/posts\/week-7-and-8-ss2-third-term-financial-accounting-notes\/","title":{"rendered":"Week 7 and 8 – SS2 Third Term Financial Accounting Notes"},"content":{"rendered":"

WEEK SEVEN AND EIGHT
\n<\/strong>TOPIC: PREPARATION OF ACCOUNTS OF NON-PROFIT-MAKING ORGANIZATIONS-PRACTICAL ILLUSTRATION
\n<\/strong>Example<\/strong>
\n\t\tThe star sports and social club provides recreational activities, refreshments and social events for its members. Its assets and liabilities at 31st<\/sup> December, 2003 were as follows
\nFixed Assets \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N
\n<\/strong>Pavilion \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0120,000
\nClub sports equipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 40,000
\nMotor roller \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 2,000 <\/p>\n

\u00a0Current Assets \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\n\t\t\t\t<\/strong>Stock of equipment for sale to members\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,000
\nAnnual subscription owing \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,200
\nBank balance\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 6,730<\/p>\n

\u00a0Current liabilities
\n<\/strong>Creditors for equipment for sale to members\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,300
\nAnnual subscription received in advance \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 800
\nLife subscriptions fund \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,750<\/p>\n

\u00a0In the year ended 31st<\/sup> December, 2003 the club’s cash receipts and payments were as follows.
\nReceipts <\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0
\nAnnual subscriptions \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N18,000
\nProceeds from sale of equipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N12,000
\nSale of tickets for dinner-dance N4,400. Refreshment and bar takings N2660. Life members subscription N400<\/p>\n

\u00a0
\n\u00a0Payments
\n<\/strong>Caretaker’s wages N8,000. Repairs to club equipment N1,700 purchase of club equipment N2000. Equipment for sale to members N4000. Heating and lighting N1800. Food for refreshment bar N1400. Secretary’s expenses N840.
\nDinner \u2013 dance expenses: – Hire of band N 200 – Catering N 1000<\/p>\n

\u00a0Further information <\/p>\n

\u00a0<\/p>\n

    \n
  1. At 31st<\/sup> December 2004: annual subscriptions in arrears N1400, annual subscriptions received in advance were N900\n<\/li>\n
  2. Stock of equipment for sale to members N200\n<\/li>\n
  3. Creditors of equipment for sale to members N900\n<\/li>\n
  4. A member donated N5000 to a fund to encourage young people to train for sport. This donation was invested in saving bonds.\n<\/li>\n
  5. the club transfers life subscriptions to the income and Expenditure Account in equal installment over five years\n<\/li>\n
  6. Depreciation is to be provided on fixed assets by the reducing \u2013 balance method as follows:- pavilion 6%. Sport equipment 20%, motor roller 20%. Required (a) prepare the star sport and social club’s income and Expenditure Account for the year ended 31st<\/sup> December, 2004 (b) prepare the club’s balance sheet as at 31st<\/sup> December, 2004\n<\/li>\n<\/ol>\n

    \u00a0
    \n\u00a0Solution
    \nStep 1:<\/strong>\u00a0\u00a0\u00a0\u00a0Prepare an opening statement of affairs. This will give the balance on the Accumulated fund at 1st<\/sup> January 2004 and will be the starting point for recording the transactions during the year.<\/p>\n

    \u00a0Statement of affairs as at 31st<\/sup> December, 2003.
    \n<\/strong>
    \n\u00a0Fixed Assets:- \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N
    \nPavilion Sport equipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0120,000
    \nClub sports equipment \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 40,000
    \nMotor roller \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 20,000
    \nCurrent Assets
    \nStock of equipment for sale to members \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 4,000
    \nAnnual subscriptions owing \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,200
    \nBank balance\u00a0\u00a0\u00a0\u00a0 6,730
    \n\t\tTotal Assets \u00a0\u00a0\u00a0\u00a0173,930<\/p>\n

    \u00a0Current Liabilities
    \nCreditors for equipment for sale to members \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,300
    \nAnnual subscription received in advance \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 800
    \nLife subscription fund\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1,700\u00a0\u00a0\u00a0\u00a0 3,850
    \n\t\tAccumulated fund 1st<\/sup> January, 2004\u00a0\u00a0\u00a0\u00a0<\/strong>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0170,080\u00a0\u00a0\u00a0\u00a0
    \n\t\t\tStep 2:-<\/strong>\u00a0\u00a0\u00a0\u00a0prepare a receipt and payments Account. This will summarize all the transactions affecting the Income and Expenditure Account and balance sheet and calculate the bank balance at 31st<\/sup> December, 2004.<\/p>\n

    \u00a0\"\"\/\"\"\/Receipts and payments account for the year ended 31st<\/sup> December, 2004 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \u00a0<\/td>\n\u00a0<\/td>\n N\u00a0<\/td>\n\u00a0<\/td>\n N\u00a0<\/td>\n<\/tr>\n
    1 Jan.\u00a0<\/td>\nBalance b\/f\u00a0<\/td>\n6,730\u00a0<\/td>\n31 Dec. Caretaker’s wages\u00a0<\/td>\n8000\u00a0<\/td>\n<\/tr>\n
    31 Dec.\u00a0<\/td>\nAnnual subscriptions \u00a0<\/td>\n18,000\u00a0<\/td>\nRepair’s club equipment \u00a0<\/td>\n1,700\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\nSales of equipment\u00a0<\/td>\n12,000\u00a0<\/td>\nPurchase club equipment <\/td>\n2,000\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\nSales of tickets dinner-dance\u00a0<\/td>\n\n\u00a04,400\u00a0<\/td>\nPurchase of equipment for resale \u00a0<\/td>\n\n\u00a04,000\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\nTakings-refreshment \u00a0<\/td>\n2,660\u00a0<\/td>\nHeating and lighting\u00a0<\/td>\n1,800\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\nLife membership subscriptions\u00a0<\/td>\n\n\u00a0400\u00a0<\/td>\nDinner dance hire of band\u00a0<\/td>\n200\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nCatering \u00a0<\/td>\n1000\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nFood for refreshment bar<\/td>\n14000\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nSecretary’s expenses\u00a0<\/td>\n840\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\nBalance c\/d\u00a0<\/td>\n23,250\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\"\"\/44,190<\/td>\n\u00a0<\/td>\n44,190\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    <\/strong>
    \n\u00a0
    \n\u00a0Step 3:- <\/strong>prepare workings to adjust for accruals, prepayments, depreciation and any other items. Show these workings with your answer. <\/p>\n

    \u00a01.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Purchase of equipment for resale<\/strong><\/p>\n\n\n\n\n\n\n
    \u00a0<\/td>\nN\u00a0<\/td>\n\"\"\/<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    \"\"\/Cash part <\/td>\n4000\u00a0<\/td>\nCreditors b\/f (opening bal.) \u00a0<\/td>\n1,300\u00a0<\/td>\n<\/tr>\n
    Creditors c\/f\u00a0<\/td>\n900\u00a0<\/td>\nIncome and Exp. a\/c\u00a0<\/td>\n3,600\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n4,900\u00a0<\/td>\n\u00a0<\/td>\n4,900\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0
    \n\u00a0\"\"\/2.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Annual subscriptions A\/C<\/p>\n\n\n\n\n\n\n\n
    \u00a0<\/td>\nN\u00a0<\/td>\n\u00a0<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    \"\"\/Owing at 1st<\/sup> January<\/td>\n1,200\u00a0<\/td>\nPrepaid \u00a0<\/td>\n800\u00a0<\/td>\n<\/tr>\n
    Prepaid at 31st<\/sup> December<\/td>\n900\u00a0<\/td>\nCash (R & Payt a\/c)<\/td>\n18,000\u00a0<\/td>\n<\/tr>\n
    I & E a\/c 9for the up)\u00a0<\/td>\n18100\u00a0<\/td>\nOwing at 31st<\/sup> December<\/td>\n1,400\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n20,200\u00a0<\/td>\n\u00a0<\/td>\n20,200\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    <\/strong>
    \n\u00a03.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Life Subscriptions A\/C
    \n<\/strong>
    \n\u00a0<\/p>\n\n\n\n\n\n\n
    \"\"\/<\/td>\nN\u00a0<\/td>\n\"\"\/<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    I & Exp. A\/C (1<\/sup>\/5<\/sub> x 2<\/sup>\/50 <\/sub>)<\/td>\n430\u00a0<\/td>\nB\/F\u00a0<\/td>\n1,700\u00a0<\/td>\n<\/tr>\n
    Balance c\/f\u00a0<\/td>\n1,720\u00a0<\/td>\nCash received (i.e. additional)\u00a0<\/td>\n\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0400\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n2,150\u00a0<\/td>\n\u00a0<\/td>\n2,150\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a04.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0Club Sport equipment A\/C
    \n<\/strong><\/p>\n\n\n\n\n\n\n
    \"\"\/<\/td>\n\"\"\/N<\/td>\n\u00a0<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    Bal b\/f\u00a0<\/td>\n40,000\u00a0<\/td>\nI & Exp a\/c (20% x 4200)\u00a0<\/td>\n8,400\u00a0<\/td>\n<\/tr>\n
    Cash (addition)\u00a0<\/td>\n2,000\u00a0<\/td>\nBal c\/d\u00a0<\/td>\n33,600\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n42,000\u00a0<\/td>\n\u00a0<\/td>\n42,000\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0
    \n\u00a0Step 4: <\/strong> The income and expenditure A\/C and Balance sheet may now be copied out from steps 1, 2 and 3. As the sale of equipment to members is trading, a trading A\/C should be prepared even though the question did not ask for it. <\/p>\n

    \u00a0If steps 1, 2 and 3 have been carefully carried out, preparing the income & Expenditure A\/C and balance sheet is now only copying exercise and can be completed in little time.<\/p>\n

    \u00a0Sales of equipment A\/C
    \n<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n
    Sales\u00a0<\/td>\nN\u00a0<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    Less: Cost of sales \u00a0<\/td>\n\u00a0<\/td>\n1,200\u00a0<\/td>\n<\/tr>\n
    Stock 1st<\/sup> January<\/td>\n4000\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Purchase (wk. 1)\u00a0<\/td>\n3,600\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n7,600\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Less closing stock 31\/12\/04\u00a0<\/td>\n2000\u00a0<\/td>\n5,600\u00a0<\/td>\n<\/tr>\n
    Profit on sales of equipment (transferred to income and expenditure account)<\/td>\n\u00a0<\/td>\n\n\u00a06,400\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0STAR SPORTS AND SOCIAL CLUB
    \n<\/strong>INCOME & EXPENDITURE ACCOUNT FOR THE YOUR ENDED 31\/12\/04
    \n<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
    \u00a0<\/td>\nN\u00a0<\/td>\nN\u00a0<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    Annual subscriptions (wks. 2)\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n18,000\u00a0<\/td>\n<\/tr>\n
    Life subscription (wks. 3)\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n430\u00a0<\/td>\n<\/tr>\n
    Profit on sale of equipment \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n6,400\u00a0<\/td>\n<\/tr>\n
    Dinner\/dance:- <\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Sales of ticket\u00a0<\/td>\n\u00a0<\/td>\n4,400\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Less: Hire of band\u00a0<\/td>\n200\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Catering\u00a0<\/td>\n1,000\u00a0<\/td>\n1,200\u00a0<\/td>\n3,200\u00a0<\/td>\n<\/tr>\n
    Refreshment Bar\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Takings\u00a0<\/td>\n\u00a0<\/td>\n2,660\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Less: cost of food\u00a0<\/td>\n\u00a0<\/td>\n1,400\u00a0<\/td>\n1,260\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n29,390\u00a0<\/td>\n<\/tr>\n
    Less expenses \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Caretaker’s wages\u00a0<\/td>\n\u00a0<\/td>\n8,000\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Repairs to club equipment\u00a0<\/td>\n\u00a0<\/td>\n1,700\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Heating and lighting <\/td>\n\u00a0<\/td>\n1,800\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Secretary’s expenses\u00a0<\/td>\n\u00a0<\/td>\n840\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Depreciation: Pavilion (6% x 120,000)\u00a0<\/td>\n\u00a0<\/td>\n7,200\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    :Equipment (wks. 4)\u00a0<\/td>\n\u00a0<\/td>\n8400\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    : Motor roller (20% x N2000)\u00a0<\/td>\n\u00a0<\/td>\n400\u00a0<\/td>\n28,340\u00a0<\/td>\n<\/tr>\n
    SURPLUS OF INCOME OVER EXPENDITURE \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n1,050<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a0BALANCE SHEET
    \n<\/strong>AS AT 31ST DECEMBER, 2004<\/p>\n

    \n\n\n\n\n\n\n\n\n
    \u00a0<\/td>\nN\u00a0<\/td>\nN\u00a0<\/td>\n<\/tr>\n
    Fixed Assets at net book value\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Pavilion \u00a0<\/td>\n\u00a0<\/td>\n112,800\u00a0<\/td>\n<\/tr>\n
    Club equipment \u00a0<\/td>\n\u00a0<\/td>\n33,600\u00a0<\/td>\n<\/tr>\n
    Motor roller\u00a0<\/td>\n\u00a0<\/td>\n1,600\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n148,000\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    <\/strong>
    \n\u00a0Current Assets
    \n<\/strong><\/p>\n

    \n\n\n\n\n\n\n
    Stock of equipment for resale to members\u00a0<\/td>\n2000\u00a0<\/td>\n<\/tr>\n
    Subscription owing \u00a0<\/td>\n1,400\u00a0<\/td>\n<\/tr>\n
    Bank balance <\/td>\n23,250\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n26,650\u00a0<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    \u00a0<\/p>\n

    \n\n\n\n\n\n\n\n\n\n
    Less current liabilities\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Creditors\u00a0<\/td>\n900\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Subscriptions prepaid\u00a0<\/td>\n900\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
    Life subscriptions (wks. 3)\u00a0<\/td>\n1,720\u00a0<\/td>\n3,520\u00a0<\/td>\n23,130\u00a0<\/td>\n<\/tr>\n
    \u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n171130\u00a0<\/td>\n<\/tr>\n
    Presented By:\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n170080\u00a0<\/td>\n<\/tr>\n
    Accumulated fund at 1\/1\/04
    \nAdd surplus of income over expenditure\u00a0<\/td>\n    		\u00a0<\/td>\n\u00a0<\/td>\n1050
    \n171130<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n

    \u00a0Fund to encourage young people to train for sports \u00a0\u00a0\u00a0\u00a0N5000
    \nPresented by savings fund \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0N5000<\/p>\n

    \u00a0Evaluation<\/strong>
    \n\t\t\t\t\t\t\t\tWrite short note on (a) subscription prepaid (b) subscription accrued<\/p>\n

    \u00a0Reading Assignment
    \n<\/strong>Financial accounting with Ease by Onafowokan O., Harold Randall pages 95-98
    \nWEEKEND ASSIGNMENT
    \n<\/strong><\/p>\n

      \n
    1. \n
      Life subscription A\/C should have a (a) debit balance (b) credit balance (c) neutral balance (d) none of the above\n<\/div>\n<\/li>\n<\/ol>\n
        \n
      1. \n
        Club sports equipment A\/C should have a balance (a) credit (b) debit (c) debit and credit (d) neutral\n<\/div>\n<\/li>\n<\/ol>\n
          \n
        1. \n
          Sales of a equipment to members is a form of (a) asset (b) trading (c) gambling (d) debating\n<\/div>\n<\/li>\n<\/ol>\n
            \n
          1. \n
            Subscriptions accrued is an\/a_______ (a) asset (b) liabilities (c) accumulated fund (d) working capital\n<\/div>\n<\/li>\n<\/ol>\n
              \n
            1. \n
              Repair of club equipment is a ______ expenditure (a) revenue (b) capital (c) fixed (d) floating\n<\/div>\n<\/li>\n<\/ol>\n

              \u00a0THEORY
              \n<\/strong><\/p>\n

                \n
              1. \n
                Write short notes on (a) annual subscription (b) life subscriptions (c) subscription prepaid (d) subscription accrued\n<\/div>\n<\/li>\n
              2. \n
                Differentiate between life membership subscriptions and annual subscription of a non-profit-making organization.\n<\/div>\n<\/li>\n<\/ol>\n

                \u00a0GENERAL EVALUATION QUESTIONS
                \n<\/strong><\/p>\n

                  \n
                1. \n

                  \n\t\t\t\t\t<\/strong>List five sources of income for a not-for-profit making organizations\n<\/div>\n<\/li>\n
                2. \n
                  State five differences between a Receipts and Payments Account and\n<\/div>\n

                  an Income and Expenditure Account\n<\/li>\n

                3. \n
                  State five uses of a Control Account\n<\/div>\n<\/li>\n
                4. \n
                  State six errors that will not affect the agreement of the trial balance\n<\/div>\n<\/li>\n
                5. \n
                  Explain the objective of transfer pricing in Manufacturing Accounts.\n<\/div>\n<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

                  WEEK SEVEN AND EIGHT TOPIC: PREPARATION OF ACCOUNTS OF NON-PROFIT-MAKING ORGANIZATIONS-PRACTICAL ILLUSTRATION Example The star…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,274],"tags":[],"class_list":["post-3462","post","type-post","status-publish","format-standard","hentry","category-posts","category-third-term-ss2-financial-accounting"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3462","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/comments?post=3462"}],"version-history":[{"count":2,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3462\/revisions"}],"predecessor-version":[{"id":3464,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/posts\/3462\/revisions\/3464"}],"wp:attachment":[{"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/media?parent=3462"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/categories?post=3462"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ecolebooks.com\/nigeria\/wp-json\/wp\/v2\/tags?post=3462"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}