Topic: Accounts of Not-for-Profit Entities

Search 500 + past questions and counting.

FA – May 2012 – L1 – SB – Q1 – Accounts of Not-for-Profit Entities

Prepare income statement, income and expenditure account, and statement of financial position for a not-for-profit society.

Question

The following details are available from the books of Tops Darts Society:

(iii)
The person handling Dart sales, “all in cash,” disappeared with the money received from this source. It is unknown how much was stolen, but all darts were sold at a profit of 33⅓% on cost price.

(iv)
Three people paid life membership fees of N4,000 each. One-tenth of this amount is to be credited to the income and expenditure account each year, while the remaining is treated as prepaid.

(v)
Depreciation on equipment is to be calculated at 20%.

You are required to:

(a) Draw up a Darts Income Statement for the year 2011 to calculate the gross profit on Darts sold. The cash stolen should be credited to this account, with a debit shown in the Income and Expenditure Account.
(b) Prepare an Income and Expenditure Account for the year ended 31 December 2011, and a Statement of Financial Position as at that date.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Financial Position, Income Statement, Not-for-profit, Theft
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2012

FA – Nov 2011 – L1 – SB – Q3 – Accounts of Not-for-Profit Entities

This question requires the preparation of financial statements for a non-profit entity.

Question

The Balance Sheet of Paramount Youth Centre as at 31 December 2009 is shown as follows:
Balance Sheet as at 31 December 2009:

The following transactions took place during the period 1 January 2010 to 31 December 2010:

Receipts:
Subscriptions (10,000 members @ N1,600 each) N16,000
Donations N1,600
Sale of tickets for annual dinner N10,800
Payments:
Electricity N4,000
Expenses for annual dinner N6,200
New games equipment N3,200
Cleaners’ wages N2,080
Repairs and renewals N1,660
Motor van repairs N2,520

Notes:

An electricity bill of N900,000 was owed at 31 December 2010.
Depreciation should be calculated at 10% of cost of the assets.

You are required to prepare:
(a) The Receipts and Payments Account. (4 ½ Marks)
(b) The Income and Expenditure Account and Balance Sheet as at 31 December 2010. (10 ½ Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Non-Profit Organizations
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q10 – Accounts of Not-for-Profit Entities

This question asks about the term used to describe gratuitous receipts from members and non-members of a not-for-profit organization.

Question

The gratuitous receipt from members and non-members of a not-for-profit organization is called?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Not-for-Profit Accounting, Receipts
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2011

FA – Nov 2011 – L1 – SA – Q13 – Accounts of Not-for-Profit Entities

This question asks which term refers to a fee paid upon admission into a social club.

Question

The fee paid by a new member on admission into a social club is known as
A. Life membership fee
B. Annual subscription
C. Registration fee
D. Clubbing fee
E. Membership qualification fee

Answer

Find Related Questions by Tags, levels, etc.

Tags: Life Membership Fees, Social Club Accounts
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2011

FA – Nov 2020 – L1 – SB – Q4 – Accounts of Not-for-Profit Entities

Prepare bar’s statement of profit or loss, income and expenditure account, and statement of financial position for Surulere Social Club.

Question

The following is a summary of the receipts and payments of Surulere Social Club for the period ended October 31, 2019:

Receipts:

Membership subscriptions: N255,000
Donation: N22,500
Income from Christmas party: N12,750
Bar takings: N405,000

Payments:

Rates: N13,500
General expenses: N393,000
Bar purchases: N277,500
Christmas party expenses: N2,500

Other relevant information for the period is as follows:

Item	Nov 1, 2018	Oct 31, 2019
Subscription due	N13,500	N9,000
Subscription paid in advance	N750	N1,500
Rates owing	N6,750	N7,500
Bar inventory	N30,000	N37,500
Club premises (cost N750m)	N300,000	N270,000
Furniture & fittings (cost N150m)	N45,000	N30,000
Bank balance	N24,000	N33,000

Required:

a. The club bar’s statement of profit or loss for the year ended October 31, 2019. (3 Marks)
b. The income and expenditure account for the year ended October 31, 2019. (8 Marks)
c. Statement of financial position as at October 31, 2019. (9 Marks)

(Show workings)
(Total: 20 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Income and Expenditure, Not-for-profit organizations, Receipts and Payments, Subscription
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2020

FA – Nov 2012 – L1 – SB – Q36 – Accounts of Not-for-Profit Entities

Identify the statement showing the performance of a not-for-profit organization under accruals accounting.

Question

Where a not-for-profit organization prepares the accounts using accruals basis of reporting, the statement showing the performance of the organization is the?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Income and Expenditure, Non-Profit Accounting
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2012

FA – Nov 2012 – L1 – SA – Q30 – Accounts of Not-for-Profit Entities

Determining the amount of subscriptions to be included in the income and expenditure account.

Question

The balances extracted from the accounting records of Disney Social Club in respect of its subscriptions are as follows:

Balance b/f 1 January 2011: N40,000
Balance b/f 1 January 2011: (N30,000)
Subscriptions received during the year: N160,000
Balance c/f 31 December 2011: N60,000
Balance c/f 31 December 2011: (N50,000)

What is the amount of subscriptions to be included in the income and expenditure account for the year ended 31 December 2011?

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Statements, Income, Subscriptions
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2012

FA – Nov 2012 – L1 – SA – Q20 – Accounts of Not-for-Profit Entities

Identifying what should not be included in the receipts and payments account of a not-for-profit organization.

Question

Which of the following should NOT be included in the Receipts and Payments Account of a Not-for-profit organisation?

A. Annual subscription
B. Salaries and wages
C. General expenses
D. Provision for depreciation
E. Payment for the purchase of landed properties

Answer

Find Related Questions by Tags, levels, etc.

Tags: Depreciation, Not-for-profit, Receipts and Payments
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2012

FA – Nov 2012 – L1 – SA – Q19 – Accounts of Not-for-Profit Entities

Determining the effect of omitting honorarium from the receipts and payments account.

Question

The effect of omitting honorarium paid to the secretary from the Receipts and Payments Account of a social club is that it overstates the:

A. Asset and understates Accumulated fund
B. Accumulated fund and understates the assets
C. Assets and understates the liabilities
D. Liabilities and understates Accumulated fund
E. Asset and overstates the Accumulated fund

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounts, Not-for-profit, Receipts and Payments
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2012

FA – May 2013 – L1 – SA – Q30 – Accounts of Not-for-Profit Entities

This question asks for the term used to describe the excess of expenditure over income in an Income and Expenditure Account.

Question

Excess of expenditure over income in an Income and Expenditure Account of a Not-For-Profit Organisation is called:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income and Expenditure, Not-for-profit
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2013

FA – May 2013 – L1 – SA – Q21 – Accounts of Not-for-Profit Entities

This question tests knowledge of the accounting basis used in recording transactions in a not-for-profit organisation.

Question

The accounting basis maintained in recording transactions in the Receipts and Payments account of a Not-For-Profit Organisation is:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting, Not-for-profit, Receipts and Payments
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2013

FA – May 2014 – L1 – SA – Q3 – Accounts of Not-for-Profit Entities

Preparation of the income and expenditure statement for a football club.

Question

The information below relates to ABC Football Club in respect of the year ended 31 October 2013:

Item	N’000
Rent and rates	2,500
Stadium repairs and maintenance	4,500
Match takings	20,000
State government grant and aid	25,000
Wages and salaries	15,000
Payment of match bonus	5,000
Transfer fees of players who left the club	12,000
Match expenses	3,500
Transfer fees of new players bought	8,000
Fines and penalties paid to NFF	3,000
Cash and bank balances at the beginning of the period	8,700
Sales proceeds of memorabilia	900
Prize money for winning FA cup	3,500
Motor running expenses	500
Donations received	9,500
Administration expenses	2,000
Printing and stationery	400
Communication	600
Honorarium	200

The following information is also relevant:
(i) Insurance premium owing N500,000.
(ii) The club is currently facing NFF disciplinary committee investigation for players’ and fans’ misconduct in respect of week 25 match between ABC and Kwara United. The club lawyers have stated in their last letter that it was highly probable that the club will be found liable, and based on past experience, the club could be fined up to N2,000,000 among other punishments.
(iii) Depreciation has been accurately calculated at N150,000 in respect of the accounting period.
(iv) Other match takings not yet remitted by the club’s agent amounted to N2,600,000.

You are required to:
Prepare the Club’s Statement of Income and Expenditure in vertical format for the year ended 31 October 2013.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Income and Expenditure Statement, Not-for-Profit Accounts
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2014

FA – May 2014 – L1 – SA – Q14 – Accounts of Not-for-Profit Entities

This question tests knowledge of terminology used in non-profit accounting when expenditure exceeds income.

Question

In a not-for-profit organisation, the excess of expenditure over income is known as ………………………

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Terminology, Financial Statements, Non-Profit Organizations
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2014

FA – Nov 2021 – L1 – SA – Q7 – Accounts of Not-for-Profit Entities

This question asks about the treatment of subscription in arrears in a not-for-profit organization.

Question

Subscription in arrears is treated in the statement of financial position of a not-for-profit organisation as:
A. Current asset
B. Current liability
C. Non-current assets
D. Intangible asset
E. Tangible asset

Answer

Find Related Questions by Tags, levels, etc.

Tags: Multiple Choice, Not-for-profit, Subscription in Arrears
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2021

FA – May 2022 – L1 – SA – Q20 – Accounts of Not-for-Profit Entities

Interpret what a credit balance on a receipts and payments account indicates for a not-for-profit organization.

Question

A credit balance on a receipts and payments account of a not-for-profit organization indicates that the entity:

A. Has excess cash in the bank
B. Received more cash than it paid out during the period
C. Made more cash payments than received during the period
D. Had more revenue than expenses during the period
E. Did not owe much liabilities during the period

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cashflow, Not-for-profit, Receipts and Payments
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2022

FA – Nov 2022 – L1 – SA – Q7 – Accounts of Not-for-Profit Entities

Determine how subscription in arrears is treated in the financial position of a not-for-profit organization.

Question

Subscription in arrears is treated in the statement of financial position of a not-for-profit organization as
A. Current assets
B. Current liabilities
C. Non-current assets
D. Intangible assets
E. Tangible assets

Answer

Find Related Questions by Tags, levels, etc.

Tags: Current Assets, Nonprofit Accounting, Subscription in Arrears
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2022

FA – Nov 2023 – L1 – SA – Q18 – Accounts of Not-for-Profit Entities

Describe characteristics of not-for-profit organizations.

Question

Which of the following statements accurately describes not-for-profit organisations?

A. Not-for-profit organisations always strive to maximise their revenue and minimize costs to generate a profit
B. Not-for-profit organisations are businesses that focus solely on making a profit and do not have any other objectives
C. Not-for-profit organisations include clubs, societies, charities, hospitals, and government bodies
D. Not-for-profit organisations operate at a level where their income exceeds their costs, similar to a profit-making entity
E. Not-for-profit organisations do not generate any income and solely rely on donations and grants

Answer

Find Related Questions by Tags, levels, etc.

Tags: Financial Reporting, Not-for-profit, Organizations
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2023

FA – May 2023 – L1 – SA – Q20 – Accounts of Not-for-Profit Entities

Identifying the term used for the difference between assets and liabilities in a not-for-profit organization.

Question

The difference between the assets and liabilities of a not-for-profit organisation is called:

A. Net asset

B. Net liability

C. Accumulated fund

D. Working capital

E. Net capital

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accumulated Fund, Net Position, Not-for-profit
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: MAY 2023

FA – Nov 2019 – L1 – SA – Q16 – Accounts of Not-for-Profit Entities-

Identify what represents members’ interest in a society or club.

Question

Which of the following represents members’ interest in a Society or Club?

A. Recurrent fund
B. General reserve
C. Working capital fund
D. Unwinding fund
E. Accumulated fund

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accumulated Fund, Members’ Interest, Not-for-profit
Level: Level 1

Topic: Accounts of Not-for-Profit Entities
Series: NOV 2019

FA – May 2016 – L1 – SB – Q2 – Accounts of Not-for-Profit Entities

Preparing bar trading account, income and expenditure account, and financial position for ABUBA Social Club for March 31, 2016.

Question

The following is a summary of the receipts and payments for the year to March 31, 2016 of ABUBA Social Club:

Receipts:

Description	N’000
Club subscriptions	255,000
Donation	22,500
Christmas dance	12,750
Bar takings	405,000

Payments:

Description	N’000
Rates	13,500
General expenses	393,000
Bar purchases	277,500
Christmas dance expenses	2,250

Other relevant information at the beginning and end of the year is as follows:

Details	April 1, 2015 (N’000)	March 31, 2016 (N’000)
Subscriptions due	13,500	9,000
Subscriptions paid in advance	750	1,500
Rates owing	6,750	7,500
Bar inventory	30,000	37,500
Club premises (cost N750,000,000)	300,000	270,000
Furniture (cost N150,000,000)	45,000	30,000
Bank balance	24,000	33,000

You are required to prepare:
a. Club’s Bar Trading Account for the year ended March 31, 2016. (3 Marks)
b. The Income and Expenditure Account for the year ended March 31, 2016. (8 Marks)
c. The Statement of Financial Position as at March 31, 2016. (9 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bar Trading, Club Accounts, Financial Statements, Income and Expenditure, Not-for-profit, Statement of Financial Position
Level: Level 1